Walz signs minimum wage increase for rideshare workers into Minnesota law

On Monday, Minnesota Gov. Tim Walz (DFL) signed a bill to keep rideshare services in the state while increasing the minimum pay for Uber and Lyft drivers.

. @GovTimWalz, Sen. @OmarFatehMN (D-Minneapolis), lawmakers, and stake holders gather at the Governor’s Reception Room at the Capitol for a ceremonial bill signing for rideshare legislation. #mnsenate #mnleg pic.twitter.com/VeqyYHcBqi

— MN Senate Media (@MnSenateMedia) May 28, 2024

The legislation comes after Uber and Lyft threatened to pull their services from Minnesota in response to an ordinance passed by the Minneapolis City Council in March. The ordinance would have required the companies to raise their drivers’ pay by $1.40 per mile and $0.51 per minute of each trip. This ordinance was overwritten by the new state law, which raises the pay by $1.28 per mile and $0.31 per minute.

DFL lawmakers say this will equate to a 20% pay increase for rideshare drivers, while the provision also reportedly includes insurance benefits. The new law makes Minnesota one of the few states in the country to regulate rideshare companies.

The provision passed in the Minnesota Legislature just before it ended its 2024 session last Monday.