Uber and Lyft new driver minimum wage to take effect Dec. 1
MINNEAPOLIS (FOX 9) - The new minimum wage for Uber and Lyft drivers is set to take effect on Sunday Dec. 1 in Minnesota after a long battle of negotiations and threats from the companies to leave the state.
What's going into effect?
The new law going into effect will mandate that ride-hail companies, like Uber and Lyft, pay their drivers $1.28 per mile and 31 cents per minute, with a $5 minimum per ride.
Drivers will also have the right to appeal a deactivation and possibly reactivate their account.
Ride-hailing companies will be required to maintain auto insurance on a driver's behalf, and are required to provide blanket accident and sickness insurance policy that "provides at least $1 million in benefits for personal injuries to drivers."
The companies will also have to pay drivers with wheelchair accessible cars an additional 91 cents per mile, and pay drivers 80% of a ride cancelation fee, if the driver had already departed and the ride is canceled.
To read the full law, click here.
FOX 9 reached out to Uber and Lyft for comment regarding the new law, and have not heard back.
Background
The Minnesota Legislature, on the final day of the session, passed a bill that requires ride-hailing companies to pay drivers a minimum of $1.28 per mile and $0.31 per minute while transporting riders anywhere in Minnesota, starting on Dec. 1, 2024.
READ MORE: Uber and Lyft say they will stay in Minnesota
This means a ride that lasts 10 miles and 15 minutes would result in the driver being paid a minimum of $17.45, not accounting for expenses such as gas or wear and tear on the vehicle.
The state law came after the Minneapolis City Council approved an ordinance, overriding a veto by Mayor Jacob Frey, requiring ride-hailing companies to pay drivers $1.40 per mile and 51 cents per minute. In response, Uber and Lyft threatened to end service in Minneapolis when the ordinance went into effect on May 1.
The Minneapolis City Council eventually delayed the implementation of its ordinance until July 1, to allow more time to tweak the ordinance. Some council members also hoped the delay would give new ride-hailing app startups time to get up and running.
READ MORE: Gov. Walz signs Minnesota rideshare bill into law
Eventually, on the final day of the legislative session, a law was passed that overrode the Minneapolis ordinance, after the ride-hailing companies and state lawmakers reached a deal on a minimum wage for drivers.