Minimum pay rates for rideshare drivers proposed under bill that clears House commerce panel

Rep. Hodan Hassan (DFL-Mpls) says Uber and Lyft drivers can work between 50 and 60 hours a week transporting passengers and still have trouble supporting their families.

She sponsors HF4746, which would potentially change that.

A similar Hassan-sponsored bill was passed by the House and Senate in 2023 but vetoed by Gov. Tim Walz.

This year’s bill incorporates recommendations from the task force established by Walz last year.

The House Commerce Finance and Policy Committee approved the bill, as amended, Wednesday on a split-voice vote and sent it to the House Judiciary Finance and Civil Law Committee.

The bill would mandate minimum compensation rates for drivers on a per-mile and per-minute basis. It is currently mum, however, on what exactly those rates should be.

The task force’s report calculated that drivers would need to earn 89 cents per mile and 49 cents per minute to earn the Minneapolis minimum wage.

Provisions in the bill spell out pay transparency requirements and prohibitions against discrimination and retaliation.

The bill would grant drivers the right to appeal a deactivation, thus providing an avenue to possibly reactivate their account on a rideshare app.

Drivers are classified as independent contractors, and therefore don’t receive benefits like unemployment insurance and overtime. The bill would not change that.

Most important in the mind of Eid Ali are provisions that would mandate rideshare companies to provide drivers with vehicle insurance and compensation for injuries occurring while driving to pick up passengers or when transporting them.

“It is so dear to me because I have been seeing so many drivers who were hurt during their work,” said Ali, president of the Minnesota Uber/Lyft Drivers Association.

Injuries occurring while a driver is logged into a rideshare app but has not accepted a ride offer would not be covered.

Rep. Tim O'Driscoll (R-Sartell), the committee’s Republican lead, said he could not support the bill, but did not elaborate.

But in the past, Republicans have said they share the concerns of rideshare companies, which say that many of the bill’s provisions would harm rider safety and lead to huge fare increases, making their service cost-prohibitive to many riders.