The Minnesota Senate passed a bill mandating rideshare companies to provide their drivers a minimum wage and other benefits on Sunday in a narrow vote of 35-32.
The bill requires that all drivers be compensated $1.45 per mile within the Minneapolis-St. Paul metropolitan area and $0.34 per minute while transporting a rider. It also requires a minimum fee of $5 to transport a rider and makes companies pay drivers regardless of whether fees or fares are actually collected. The bill also provides a way for drivers to sue a company in district court for any violations of the bill and protects drivers from being arbitrarily terminated.
Rideshare drivers are currently recognized as independent contractors, meaning they are responsible for their own expenses and are not guaranteed certain rights such as a minimum wage and health care. Companies such as Uber and Lyft support the independent contractor designation while many drivers and labor advocates wish to be recognized as employees.
Although the bill states that it should not serve as a basis to conclude whether a driver is an employee or independent contractor, it still pertains to the ongoing national discussion surrounding what benefits and collective bargaining rights Uber and Lyft drivers are entitled to.
Currently, New York City and Seattle have passed legislation guaranteeing minimum wages for drivers. California and Washington have also passed laws guaranteeing drivers certain benefits but have also avoided designating drivers as employees.
Minnesota Governor Tim Walz has not yet said if he will or will not sign this bill.