The Minnesota Legislature has approved a minimum wage for Uber and Lyft drivers, according to the Minnesota Reformer.
The ground-breaking law that seeks to establish minimum pay rates for Uber and Lyft drivers and provide them with increased protections against wrongful termination was just passed with unanimous Democratic support by the Minnesota state Senate. The passing of this bill represents a significant step towards ensuring that workers in the transportation network industry are treated fairly.
During the debate that took place on the Senate floor, Sen. Omar Fateh (D-Minneapolis), who was the primary author of the bill and a representative for the DFL (Democratic Farmer Labor Party) in Minneapolis, emphasized how important it was to safeguard employees from being exploited. The state of Minnesota is well-known for its dedication to the protection of workers' rights; nonetheless, the state had fallen behind in addressing the one-of-a-kind difficulties presented by transportation network corporations (TNCs).
Because drivers for ride-sharing services like Uber and Lyft are considered to be independent contractors, rather than employees in the traditional sense, they are not entitled to critical benefits such as the federal minimum wage, overtime pay, Social Security or workers' compensation insurance.
In spite of the worries expressed by the businesses, the bill, which was given the number HF2369, received approval in the waning hours of the legislative session from both the Minnesota Senate and House. Even going so far as to imply that it would suspend its activities in the state, Uber threatened to leave California.
On the other hand, Gov. Tim Walz (D-MN) has not yet provided a definitive statement indicating whether or not he will sign the bill into law. Before making a final decision, the governor emphasized the importance of conducting an exhaustive study and responded to queries regarding the possible repercussions of the proposed legislation.
If the bill is signed into law, Minnesota will join New York City and the state of Washington as jurisdictions that have established minimum pay rates for drivers working for TNCs. In spite of the fact that these jurisdictions already have laws in place, supporters of the bill point out that Uber and Lyft are still able to run their businesses successfully there.
The path toward passing the bill was not devoid of obstacles at any point in the process. The law had substantial revisions thanks to Fateh, one of which was the elimination of a requirement for insurance that the businesses felt to be impracticable. In the end, the bill was approved with a vote of 35 to 32, and it even received backing from a Republican senator.
After the vote, there was celebration within the Capitol building, and drivers for ride-sharing services like Uber and Lyft carried Fateh on their shoulders. U.S. Rep. Ilhan Omar (D-MN) also made an appearance to demonstrate her support for the drivers. She wore a white shirt with the acronym "MULDA" on it, which stands for the Minneapolis Uber/Lyft Drivers Association.
Both Lyft and Uber have expressed their opposition to the law and requested that Walz veto it. They contend that the legislation, which was pushed through in the nick of time, would lead to increased pricing for passengers and put many drivers out of job. However, the provisions in the law are intended to ensure that drivers receive equitable compensation. These provisions include a minimum fee of $5, in addition to mileage- and time-based rates.
In addition, the bill tackles the concerns that drivers have raised regarding the wrongful deactivation of their accounts by requiring TNCs to develop clear written guidelines for the deactivation of drivers, as well as providing drivers with explanations and the right to appeal decisions on such deactivations. Legislators in Washington have already moved in the direction of making drivers for ride-sharing services like Uber and Lyft eligible for benefits like workers' compensation and paid leave, in contrast to the legislation proposed in Minnesota, which falls short of accomplishing this goal.
With its passing, this bill represents yet another worker-friendly measure that has been approved by Minnesota Democrats. It adds to a string of legislation that is focused on providing benefits such as paid sick leave and paid family and medical leave, and its passage brings the total number of worker-friendly measures enacted by Minnesota Democrats to four.
However, the drivers' status as independent contractors and the likelihood of them joining a labor union are factors that remain unchanged for the time being. The measure makes it clear that it will not change the laws that are already in place with regard to the classification of transportation network companies as employers of drivers or independent contractors.
Walz's decision, which will determine the future of ride-sharing services in the state as well as the protection of drivers' rights, is currently in the hands of the Legislature, and Minnesotans are waiting eagerly for his verdict.