Minneapolis City Council stands with workers and closes Uber Lyft loophole, winning drivers city’s minimum wage
The Minneapolis City Council has approved the Rideshare Minimum Compensation Ordinance. Council Members Wonsley, Chavez, and Osman co-authored the policy to close the loophole in the city’s $15.57 minimum wage and ensure that Uber and Lyft drivers earn minimum wage equivalents, just like every other worker in Minneapolis.
“I am so proud of the East African community who has been organizing for over two years to make this happen. Their resilience, even after hard losses at the City and state capital last year, is how workers won today,” said ordinance co-author Council Member Jamal Osman. “We expect Mayor Frey to veto the rideshare minimum compensation ordinance. He has made it clear he doesn’t believe drivers deserve a minimum wage. We are also confident that Council will continue our track record of standing with workers and will vote to override a veto.”
The City Council has championed workers’ rights, recently expanding co-enforcement and advancing a Labor Standards Board. The Rideshare Minimum Compensation Ordinance reaffirms the precedent that minimum wage equivalents are a racial justice and workers’ rights issue. The vast majority of drivers are workers of color and immigrant workers. Uber and Lyft, which made billions in 2023, claim that drivers are already earning above the minimum wage, while also stating that enforcing the minimum wage on them would dramatically alter their business and force them out of the city. Mayor Frey has amplified these claims despite the fact that Uber and Lyft data include tips and bonuses towards compensation, directly contradicting Minnesota’s status as a One Fair Wage state where tips are not not used as a credit to cover wages.
“Small businesses are required to pay minimum wage before tips, and it’s clear that billion-dollar out-of-state tech companies should be too,” Council Member Chavez stated. “No company should be above the law. Relying on low-income riders to subsidize Uber and Lyft paying drivers’ wages is an economic and racial injustice.”
Prior to the vote, Mayor Frey stated that he supported “doubling wages” for drivers, not explaining why drivers should continue to be exempted from receiving the City’s $15.57 minimum wage. He repeated Uber and Lyft’s claims that the multi-billion dollar corporations will leave the city if we enforce the existing minimum wage on them.
“As a leader on the original $15 minimum wage campaign, I knew that it would take huge amounts of determination and organization by workers to build a movement and beat back these multi-billion dollar corporations. I’m honored to have stood with workers during the Fight for $15, and with drivers this past year as we’ve tirelessly worked to win this ordinance and finally close a loophole that Uber and Lyft have used to exploit drivers.” Council Member Robin Wonsley stated.
The Rideshare Minimum Compensation Ordinance was written after many conversations with drivers, riders, the public, city staff, national experts, state legislators, and rideshare companies.
It is data-backed, equitable, and aligns with existing city policies. The authors look forward to changes at the state level that will complement this ordinance and ensure all drivers throughout the state are no longer penalized for tips and receive the minimum wage wherever they drive.
Several small startup rideshare businesses are currently working with the city on licensure and are excited to launch in Minneapolis under the new regulations.
Council Members Wonsley, Chavez, and Osman said: “Today is a win for workers, by workers. We are proud to have stood with drivers to overcome corporate lobbying and veto threats to win this historic policy today, and continue to work with our communities to build a Minneapolis economy that works for all of us.”
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