Plan to boost Uber and Lyft driver pay in Minnesota advances in state Legislature

ST. PAUL, Minn. — A plan to raise wages for Uber and Lyft drivers in Minnesota, which lawmakers believe would keep the companies from leaving the market, was introduced in the state Legislature on Sunday, hours before the deadline for lawmakers to pass bills before they are suspended.

The plan that won approval in the House of Representatives was drafted by Democrats to replace a minimum wage measure passed by the Minneapolis City Council that prompted Uber and Lyft to threaten to leave the state’s largest city.

The agreement, announced Saturday after a day of negotiations, would set a minimum wage of $1.28 per mile and 31 cents per minute. Uber has said it will continue to operate in the state under these rates. If the bill is passed, it will come into effect in January.

“While the upcoming price increases may hurt both riders and drivers, we will be able to continue operating across the state under the compromise brokered by the governor,” Uber spokesman Josh Gold said in an email to the Star Tribune.

Lyft representatives did not immediately respond to emailed questions from The Associated Press about the deal.

The measure the companies objected to would require them to pay drivers a minimum of $1.40 per mile and 51 cents per minute – or $5 per trip, whichever is greater – excluding tips, for the time they spend transporting passengers in Minneapolis.

Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, told the Star Tribune that while wages are lower than drivers had hoped, they were happy the deal came together.

Minnesota Governor Tim Walz said in a post on the social platform “I am grateful to our partners in the House and Senate (DFL) for coming together to get this done.”