Walz vetoes rideshare regulations bill

Proposed job protections for Uber and Lyft drivers will not go into effect, following a veto by Gov. Tim Walz.

Sponsored by Rep. Hodan Hassan (DFL-Mpls) and Sen. Omar Fateh (DFL-Mpls), the bill would have created a novel regulatory framework for rideshare companies.

The bill would have mandated minimum compensation rates for drivers on a per-mile and per-minute basis, and granted drivers the right to appeal a deactivation, providing an avenue to possibly reactivate their accounts on a rideshare app.

Other provisions would have empowered a local unit of government to revoke a rideshare company’s operational license and affirmed a driver’s right to sue for alleged violations of the proposed labor standards.

While Walz concurred with the aim of achieving better working conditions and wages for rideshare drivers, “House File 2369 is not the right bill to achieve these goals,” he wrote in a veto message.

He echoed arguments made during legislative debate, namely that the measure “could make Minnesota one of the most expensive states in the country for rideshare.” His statement also cited concerns raised by disability advocates and anti-violence organizations that “increased rideshare rates will limit, and potentially eliminate, needed transportation options for vulnerable communities.”

Walz affirmed his desire to take action by issuing an executive order convening a working group. Stakeholders are being asked to meet and make recommendations for the next legislative session.

This was Walz’s only veto during the 2023 legislative session, and first during his tenure as governor.

HF2369*/SF2319/CH65

HF2369* / SF2319 / VETO65