Uber and Lyft Drivers May Not Get The PayDay They Were Hoping For, Wage Increase Vetoed

Uber and Lyft Drivers May Not Get The PayDay They Were Hoping For, Wage Increase Vetoed

According to The Minnesota Reformer, Gov. Tim Walz of Minnesota has vetoed that would have mandated higher pay and job security for drivers employed by ridesharing services such as Lyft and Uber. 

The bill would have also provided drivers with better protection against company termination.

The announcement was made by the governor’s office several hours after Uber stated it would pull its service out of greater Minnesota while only providing “premium services” in the Twin Cities metropolitan area if Walz signed the bill into law.

“Rideshare drivers deserve fair wages and safe working conditions. I am committed to finding solutions that balance the interests of all parties, including drivers and riders,” Walz said in a written statement. “This is not the right bill to achieve these goals. I have spent my career fighting for workers, and I will continue to work with drivers, riders, and rideshare companies to address the concerns that this bill sought to address.”

The governor also issued an executive order to start a group that includes drivers, riders, and transportation network companies that will make recommendations for legislation next year.

A spokesperson from Lyft released a statement after the veto was announced.

“Lawmakers should pass fair pay and other protections, but it must be done in a way that doesn’t jeopardize the affordability and safety of those who rely on the service. We look forward to continuing our engagement and finding a similar pathway forward here in Minnesota.”

The bill would also have required companies like Uber and Lyft to pay drivers a $5 minimum fee plus $1.45 per mile and 34 cents per minute in the seven-county Twin Cities metropolitan area. Drivers who worked in the greater Minnesota area would have been entitled to $1.25 per mile and 34 cents per minute.

Uber stated the increases would have caused the price of rides to go up by at least 50%. With that occurring, the service demand would drop by 30%. The drivers in Minnesota would have the highest price per mile payment than anywhere else in the country.

Additionally, it would have allowed drivers to be entitled to 80% of cancellation fees if they had already left to pick up a fare, as well as $1.25 per mile and 10 cents per minute if the companies charge customers for a “long pickup.”