General NewsMinimum wageMinneapolisU.S. News Mayor of Minneapolis Rejects Measure to Implement Minimum Wage for Uber and Lyft Drivers by Ethan Kim August 23, 2023 written by Ethan Kim August 23, 2023 6 comments Bookmark 44 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. Table of Contents Frequently Asked Questions (FAQs) about Minneapolis Mayor VetoWhat decision did the Mayor of Minneapolis make regarding minimum wage for Uber and Lyft drivers?Why did the Mayor veto the proposed measure?What were the provisions of the vetoed ordinance?How did other city officials and stakeholders respond to the veto?Are there similar policies in other cities?What are Uber and Lyft’s positions on this issue?More about Minneapolis Mayor Veto Frequently Asked Questions (FAQs) about Minneapolis Mayor Veto What decision did the Mayor of Minneapolis make regarding minimum wage for Uber and Lyft drivers? Mayor Jacob Frey vetoed an ordinance that would have required minimum wages for drivers of Uber, Lyft, and other ridesharing services. Instead, he negotiated directly with Uber, securing an agreement to raise pay for Uber drivers, ensuring they receive the city’s minimum wage of $15 per hour. Lyft drivers are not included in this agreement. Why did the Mayor veto the proposed measure? Mayor Frey argued that more time was needed to create an ordinance that is data-driven and based on known impacts rather than speculation. He expressed a desire to work in partnership with all stakeholders to ensure that the policy is well-considered. What were the provisions of the vetoed ordinance? The vetoed ordinance would have mandated all ridesharing companies to pay drivers a minimum of $1.40 per mile and $0.51 per minute, or $5, whichever was higher, for the portion of rides within city limits. How did other city officials and stakeholders respond to the veto? The veto was met with criticism from some City Council members, including Robin Wonsley, who described it as an “indefensible desertion of Minneapolis workers.” Others, such as Uber, expressed appreciation for Mayor Frey’s thoughtful approach and a willingness to work together on a solution. Are there similar policies in other cities? Yes, cities like Seattle and New York have enacted similar policies that mandate minimum wages for ridesharing drivers. What are Uber and Lyft’s positions on this issue? Both Uber and Lyft opposed the Minneapolis measure. Uber has expressed a preference for a broader statewide solution that also protects driver independence, while Lyft emphasized the need for a policy framework that balances the needs of riders and drivers. 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 You Might Be Interested In Train Derailment and Bridge Failure in Colorado Leads to Semi-Truck Driver Entrapment and Coal Spillage on Highway Ukrainian Warplanes Target Russian Landing Ship in Black Sea Amidst Ongoing Conflict Powerball Announces Billion-Dollar Jackpot Winner at Last Florida Issues Health Advisory as Malaria Spreads Locally for the First Time in 20 Years in the US Polish Prime Minister Announces Cessation of Arms Shipments to Ukraine Amid Escalating Trade Dispute Unpacking ‘Bidenomics’: As the Nation Expresses Skepticism, the President Hopes for Their Embrace of His Economic Vision General NewsLyftMayor Jacob FreyMinimum wageMinneapolisridesharing driversUberveto Share 0 FacebookTwitterPinterestEmail Ethan Kim Follow Author Ethan Kim is a world news reporter who covers breaking news stories from around the globe. He has reported on everything from natural disasters to international conflicts, and he is dedicated to bringing his readers accurate and timely information. previous post How to Watch the Initial 2024 GOP Presidential Debate next post Change in Legal Representation Leads to Altered Testimony in Trump Documents Case, According to Prosecutors You may also like Bookmark A woman who burned Wyoming’s only full-service abortion... December 28, 2023 Bookmark Argument over Christmas gifts turns deadly as 14-year-old... December 28, 2023 Bookmark Danny Masterson sent to state prison to serve... December 28, 2023 Bookmark Hong Kong man jailed for 6 years after... December 28, 2023 Bookmark AP concludes at least hundreds died in floods... December 28, 2023 Bookmark Live updates | Israeli forces raid a West... December 28, 2023 6 comments Sarah_K91 August 23, 2023 - 10:36 am I live in Minneapolis and this is just the tip of the iceberg with our politicians. Frey is making a mistake. we need to stand up for all drivers, not just some Reply Timothy W August 23, 2023 - 12:16 pm This is good in my opinion. A hasty decision would have been a disaster, We need time to get this right. Some negotiations with Uber is a step in the right direction Reply Mike Jenson August 23, 2023 - 6:28 pm Can’t believe the mayor would veto this, what about the Lyft drivers? They’re left out in the cold, very unfair if you ask me. Reply KatieLovesCats August 23, 2023 - 8:46 pm what about the drivers? they’ve been pushing for this for months! Its not fair to them, especially those who are struggling. The mayor’s gotta think about everyone. Reply Robert_42 August 24, 2023 - 3:05 am I’m a driver myself, and the way things are done is complicated. the mayor might be onto something, but it’s hard to trust polititians these days. Reply Emily R August 24, 2023 - 3:58 am This veto might have a lot of consequences, but if Seattle and New York can figure it out, why can’t Minneapolis? Seems like a step back for us. Reply Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment. Δ