MINNEAPOLIS — Minnesota state lawmakers from both the House and Senate came together with the Minneapolis City Council to announce a compromise on the much-debated minimum wage proposed for rideshare drivers.
The new agreement, announced Monday, would set a statewide minimum wage rate of $1.27 per mile and $0.49 a minute.
This follows a vote in April, where the city council voted to delay the start of the newly-approved rideshare ordinance, securing Uber and Lyft in the city until July while the wage debate continues.
“It was refreshing to work with our state leaders who were willing to engage in tough conversations without compromising the core DFL value of making sure every worker, regardless of profession, can earn a minimum wage,” said Minneapolis City Council President Elliott Payne in a press release. “I’m thrilled that this collaboration between leadership of the Senate, House, and City Council, along with the policy’s authors, has led to this huge win for ride-share drivers across Minnesota.”
The wage debate has been months in the making, with nationally known services like Lyft and Uber threatening to pull all service out of Minneapolis after a proposed bill requiring companies to pay drivers $1.40 per mile and $0.51 per minute for the time transporting a rider, or $5.00, whichever is greater.
“I am honored to be carrying this legislation and am excited to be working closely with all stakeholders so that drivers are treated with respect and paid fairly,” said Representative Hodan Hassan (DFL-Minneapolis) in a written statement. "This agreement is a win for drivers and all Minnesotans looking for consistent and reliable rideshare services.”
Senator Jim Abeler (R-Anoka), a co-author of the rideshare legislation, said “These wages will provide both the drivers and rideshare companies with the stability they need to continue to operate."
The amendment to the bill will be introduced in the House Labor and Industry Finance and Policy Committee on Tuesday.
A spokesperson for Gov. Tim Walz released a statement saying it was a "positive step" in the right direction, adding that the governor will continue discussing the issue with legislative leaders.
The full statement reads:
This is a positive step in the right direction that indicates all parties are continuing to work together. The Governor’s goal remains to be finding a solution that ensures workers are paid fairly while allowing these essential services to remain in Minnesota. He will continue discussing this issue with legislative leaders over the coming days.
On Monday afternoon, Lyft sent this written statement to KARE 11, suggesting it would be forced to leave the state if the measure becomes law.
Lyft continues to support a minimum earnings standard for drivers. However, as was the case with the extremely-flawed Minneapolis ordinance, the proposed rates in the state bill would be incredibly damaging for both riders and drivers. Rides would become unaffordable for most across the state, not just in Minneapolis, and drivers would earn even less. It would make the service unsustainable in Minnesota and we would be forced to shut down throughout the state, should it pass.
In a statement, Uber hinted that it, too, could leave Minnesota entirely:
It's disappointing some in the legislature are allowing the Minneapolis City Council to drive a decision that impacts millions of people who don't live in the City. We've made a serious offers and hope we can still work with the Governor and legislature on a statewide solution that allows rideshare to remain in the state.
Previously, Uber and Lyft said they would both pull their services from the city on July 1.
Empower, a smaller startup, released a statement Monday claiming it would provide "software and support services" should both companies pull out of the Twin Cities.
The full statement reads:
While we continue to believe Uber and Lyft are bluffing, should they actually make good on their threat to leave, Empower will immediately provide the software and support services needed to ensure that drivers themselves are able to provide every ride in Minnesota that would otherwise be provided by Uber or Lyft.
Empower is in active conversations with city and state elected officials, and regardless of Uber and Lyft's decision, we will continue to work with elected officials and other stakeholders to ensure that drivers in the Twin Cities, like all other service professionals in Minnesota, have the right to work for themselves and determine their own worth.
Meet Minneapolis released a statement saying it's monitoring the situation and remains hopeful a solution is found.
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