House lawmakers pass agreement that would keep Uber, Lyft operating in Minnesota

A provision two years in the making is now a signature away from providing benefits to ride share drivers.

Passed 71-59 by the House and included in the transportation, labor and housing conference committee report is a plan to pay rideshare drivers $1.28 per mile and 31 cents per minute with a $5 minimum per ride.

The transportation, labor and housing bill was passed 70-59 Sunday night and sent to the Senate.

Sponsored by Rep. Hodan Hassan (DFL-Mpls), HF4746, as amended, would also grant drivers the right to appeal a deactivation, providing an avenue to possibly reactivate their account on a rideshare app, and appropriate $173,000 in fiscal year 2025 from the General Fund for enforcement, education, and outreach, with annual base of $123,000 beginning in fiscal year 2026.

“This has been about fair wages, fair treatment and protecting workers,” she said. “These are immigrants, new Americans. These are low-income people. These are Black and brown people … who want to achieve the American Dream. And that has been what this work has been.”

At a late-Saturday news conference, House Majority Leader Jamie Long (DFL-Mpls) called the it “the best deal” possible after the companies had threatened to cease operations after the Minneapolis City Council voted to require a raise for them earlier this year.

Sen. Omar Fateh (DFL-Mpls), the Senate sponsor, was more emotional at the gathering. “This damn bill,” he said while holding back tears. “It’s been two long years.”

Officials representing Uber and Lyft assured the conference committee Sunday that the two companies would continue to operate in Minnesota.

“Every word of this bill has been vetted with council and ‘where shall’ in this bill is the appropriate grammar,” said Uber representative Joel Carlson.

[MORE: Labor panel approves rideshare pay compromise; Uber, Lyft say rate ‘not supportable’]

Drivers are classified as independent contractors, and don’t receive benefits like unemployment insurance and overtime, and the bill would not change that. However, provisions would mandate rideshare companies provide drivers with vehicle insurance and compensation for injuries occurring while driving to pick up passengers or when transporting them.

Republicans question late-session process

Rep. Hodan Hassan receives a hug from Rep. Liz Lee following passage of HF4746 on the House Floor May 19. (Photo by Michele Jokinen)

Acknowledging that keeping the rideshare companies in Minnesota was the right thing to do, House Minority Leader Lisa Demuth (R-Cold Spring) termed Sunday’s House debate on the bill as “absolutely disingenuous” and “not a serious process.”

A dozen amendments were added to the bill but none of the changes are included in the conference committee report that was finalized before the House ended debate on the bill as a standalone product.

Long said the path was taken to allow the full body to engage in debate on the issue with the session in its final hours.

Republican amendments that were adopted would have:

• authorized the commissioner of public safety to determine if the bill would increase drunk driving rates;
• authorized the commissioner of human services to determine if the bill would reduce mobility for individuals with disabilities;
• authorized the commissioners of health and employment and economic development to determine if the bill would reduce the ability for those without personal vehicles to access basic needs like health care, groceries, or employment;
• authorized the commissioner of education to determine if the bill would reduce access to schools and education for children;
• allowed enforcement of non-discrimination provisions;
• required transportation services to continue for certain students in the event of a work stoppage;
• prohibited a board member or an employee of a driver's advocacy organization from donating to a state legislator;
• added an automatic inflator to the rates based on the 12-month change in the consumer price index;
• mandated transportation network companies fund sexual assault training; and
• required a driver's advocacy organization to meet safeguard requirements.