Mayor of Minneapolis Rejects Measure to Implement Minimum Wage for Uber and Lyft Drivers

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On Tuesday, the Mayor of Minneapolis, Jacob Frey, exercised his veto power to reject a proposal that would have mandated minimum wages for drivers of Uber, Lyft, and other ridesharing services. This decision has been labeled as “an indefensible desertion of Minneapolis workers” by a member of the City Council.

Rather than accepting the ordinance, Mayor Frey chose to negotiate directly with Uber, arriving at an agreement to raise the pay only for drivers affiliated with that company.

In his formal message outlining his veto, Mayor Frey stated that he had “garnered a commitment from Uber” to ensure drivers within Minneapolis or operating in the city would receive the city’s minimum wage of $15 per hour. Furthermore, Uber has pledged to pay drivers at least $5 for any trip undertaken in the metropolitan area. However, the Mayor’s deal does not include Lyft drivers.

The now-vetoed ordinance would have obligated all ridesharing companies to pay drivers a minimum of $1.40 per mile and $0.51 per minute, or $5, whichever was higher. This provision would have been applicable only to the portion of rides occurring within city limits.

Such regulations are not unprecedented, as cities like Seattle and New York have enacted similar policies.

Acknowledging the complexity of the issue, Frey stated, “It’s clear we need more time to get this right,” and promised a careful and data-driven approach to creating a policy that avoids assumptions or conjectures.

City Councilmember Robin Wonsley criticized Mayor Frey as willing to forsake living wages and workers’ rights due to lobbying from major out-of-state corporations. Wonsley described the veto as “an indefensible desertion of Minneapolis workers,” highlighting that the ordinance was crafted through extensive consultation.

It is worth noting that many of the rideshare drivers involved are African immigrants who have been advocating for increased wages for several months.

Mayor Frey had previously urged the City Council to defer action on the Minneapolis ordinance, hoping for a statewide plan instead. However, this was seen as an inadequate response by Eid Ali, the president and founder of the Minnesota Uber and Lyft Driver’s Association.

Earlier, in May, a bill that would have mandated higher pay and job security for Lyft and Uber drivers was vetoed by Minnesota’s Democratic Governor Tim Walz, citing concerns that it was not the right approach to achieving fair wages and safe working conditions.

Rideshare drivers, akin to other gig economy workers, are generally classified as independent contractors and are thereby exempt from minimum wages and benefits. They are also responsible for their own vehicular expenses.

Both Uber and Lyft opposed the Minneapolis measure. Lyft expressed relief at avoiding a hasty and flawed bill, while Uber emphasized a preference for a “broader statewide solution that also protects driver independence.”

Uber, in a statement on Tuesday, appreciated Mayor Frey’s considerate approach and expressed a desire to work together, hoping for a statewide compromise to be enacted by the Minnesota legislature in the coming February.

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More about Minneapolis Mayor Veto

• Minneapolis Mayor’s Office
• Minnesota Uber and Lyft Driver’s Association
• Lyft Official Statement
• Uber Official Statement
• Minimum Wage Laws in Seattle
• Minimum Wage Laws in New York City