Minnesota Governor Vetoes Minimum Pay for Ridehail Drivers After Uber Threatens to Leave
Minnesota Governor Tim Waltz has vetoed a law that would result in guaranteed minimum pay for ridehail drivers after Uber threatened to end service in the Twin Cities area if it went into effect.
The bill would have mandated minimum per and minute per mile payouts to drivers, with different rates set for the Twin Cities area and for the rest of the state. The pay would have been indexed to inflation. The bill also states that nothing in it “prohibits collective bargaining or is a basis to conclude whether a driver is an employee or independent contractor.”
In an email to its drivers that was shared with KSTP in Minneapolis, Uber urged its drivers to reject the legislation on the basis that it “leaves you vulnerable to becoming employees—something we have been told repeatedly drivers do not want.” The company said that the bill would double the cost of driver trip requests and leave “thousands of drivers without work.” The company said it would “likely have no choice but to reduce service throughout the state and possibly shut down services entirely.”
When the bill passed the Minnesota house and senate on May 22, drivers in support of the legislation hoisted one of the bill’s sponsors, Senator Omar Fateh, on their shoulders and cheered in celebration at the statehouse , a celebration that was short-lived.
