Following a protracted negotiation process and threats from the businesses to withdraw from Minnesota, the new minimum pay for Uber and Lyft drivers is scheduled to go into effect on Sunday, December 1.
What will be implemented?
With a $5 minimum fee per journey, the new rule will require ride-hail services like Uber and Lyft to pay its drivers $1.28 per mile and 31 cents per minute.
Additionally, drivers will have the option to contest a deactivation and maybe have their account reactivated.
Ride-hailing services must provide a comprehensive accident and sickness insurance policy that “provides at least $1 million in benefits for personal injuries to drivers.” They must also maintain auto insurance on a driver’s behalf.
In addition, the businesses will be required to reimburse drivers who drive wheelchair-accessible vehicles an extra 91 cents per mile and reimburse drivers for 80% of the ride cancellation cost in the event that the driver has already left and the ride is canceled.
Click here to read the entire law.
Context
On the last day of the session, the Minnesota Legislature enacted a bill requiring ride-hailing services to pay drivers at least $1.28 per mile and $0.31 per minute when they transport passengers throughout Minnesota beginning on December 1, 2024.
Without taking into consideration costs like gas or vehicle wear and tear, this implies that the driver would receive a minimum of $17.45 for a 10-mile, 15-minute service.
After the Minneapolis City Council overrode Mayor Jacob Frey’s veto of an ordinance mandating ride-hailing businesses to pay drivers $1.40 per mile and 51 cents per minute, the state law was passed.
When the ordinance took effect on May 1, Uber and Lyft responded by threatening to stop operating in Minneapolis.
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In order to give itself more time to make necessary revisions, the Minneapolis City Council ultimately postponed the ordinance’s execution until July 1. Additionally, a few council members anticipated the postponement would provide new ride-hailing service firms more time to launch.
After the ride-hailing companies and state lawmakers agreed on a minimum pay for drivers, a law overriding the Minneapolis ordinance was eventually passed on the last day of the legislative session.
