Minnesota Uber, Lyft Driver Pay Package Past Deadline to Get Legislature Approval

ST. PAULO, Minnesota – A plan to raise wages for Uber and Lyft drivers in Minnesota, which lawmakers believe would prevent the companies from leaving the market, advanced in the state Legislature on Sunday ahead of a midnight deadline.

The House approved the compensation bill, but the measure was held up in the Senate before it was approved before the deadline for lawmakers to approve the bills before they are postponed. The bill now heads to Gov. Tim Walz to be signed into law, the Star Tribune reported.

The proposal that initially won approval in the House was crafted by Democrats to replace a minimum wage measure approved by the Minneapolis City Council that prompted Uber and Lyft to threaten to leave the state’s largest city.

The House deal announced Saturday after a day of negotiations would set a minimum pay rate of $1.28 per mile and 31 cents per minute. Uber said it will continue to operate in the state at these rates. The project would come into force next January, if approved.

“While upcoming price increases may harm riders and drivers alike, we will be able to continue operating statewide under the governor-brokered compromise,” Uber spokesman Josh Gold said in an email to the Star Tribune.

Lyft representatives did not immediately respond to emailed questions from The Associated Press about the deal.

The measure that raised objections from companies would require them to pay drivers at least $1.40 per mile and 51 cents per minute — or $5 per trip, whichever is greater — excluding tips, for time spent transporting passengers. in Minneapolis.

Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, told the Star Tribune that although the pay rates were lower than drivers demanded, they were happy to see the deal come to fruition.

After House approval, the governor said in a post on the social media platform X that the deal “gives rideshare drivers a 20% raise and keeps these important services operating in Minnesota. I’m grateful to our partners in the DFL House and Senate for coming together to achieve this.”