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City of Minneapolis Passes Measure for Minimum Wage to Uber and Lyft Drivers

CIO Insider Team | Friday, 18 August, 2023
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A resolution establishing a minimum salary for drivers of Uber, Lyft, and other ride-share firms in the city of Minneapolis narrowly passed the Minneapolis City Council. It is still up to veto from the mayor.

Many of the drivers are immigrants from Africa who have long fought for improved pay at the state and local levels.

Drivers would receive at least $1.40 per mile and $0.51 per minute, or $5, whichever is larger, under the proposed legislation. Only the portion of the ride that takes place in the city would be subject to the rule.

The Democratic-controlled City Council members who supported the bill 7-5 said they wanted to raise drivers' pay as quickly as possible so that they could support their families. Members added that they are voting in favor of the resolution because they oppose the exploitation of employees by major corporations like Uber and Lyft.

The mayor might veto the proposal, according to those who voted against it, and it could lead Uber and Lyft to raise their consumer costs, which would impact low-income individuals who rely on those services for transportation.

They support a minimum earning standard for drivers, but it should be part of a broader statewide solution that also protects driver independence. That's why they urge Mayor Frey to veto this bill and instead allow time for the state's rideshare task force to complete its research

“If it becomes law, drivers would ultimately earn less because prices could double and only the wealthiest could still afford a ride," Lyft adds.

According to Lyft they support a minimum earning standard for drivers, but it should be part of a broader statewide solution that also protects driver independence. That's why they urge Mayor Frey to veto this bill and instead allow time for the state's rideshare task force to complete its research.

Ride-hailing drivers, like other gig economy employees, are frequently regarded as independent contractors who are not eligible for minimum wages or other benefits and who are responsible for paying their own petrol and auto loans.

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