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MINNEAPOLIS – The Minneapolis City Council voted to require Transportation Network Companies like Uber and Lyft to pay drivers rates equal to the city’s minimum wage. The victory comes after over eighteen months of labor organizing by drivers and legislative work by the City Council and represents a major advancement of efforts to improve wages and working conditions for drivers across the state and the country.
“This is a David and Goliath story. Regular working-class people took on two corporate giants and their political allies, and won. Uber and Lyft want us to believe they are untouchable, and the status quo of exploiting workers cannot be fixed. Today’s vote demonstrated that all of this was just a question of political will. I’m so proud to have worked with these drivers every step of the way to make today’s victory a reality,” said Council Member Robin Wonsley, the lead author on the policy.
The ordinance requires transportation network companies pay their drivers a minimum of $1.40 per mile and $0.51 per minute for all portions of a ride occurring within Minneapolis. These rates are approximately equal to the city’s $15.57 minimum wage for hourly workers. Recently released data from the Minnesota Department of Labor and Industry show that the median earnings for drivers in the metro area is $13.63, with 25% of drivers in the metro area earning under $10.54 per hour. This means many drivers in the metro area are earning for less than Minneapolis's current minimum wage.
“Drivers are human beings with families, and they deserve dignified minimum wages like all other workers. Today’s vote showed Uber, Lyft, and the Mayor that the Minneapolis City Council will not allow the East African community, or any community, to be exploited for cheap labor. The Council chooses workers over corporate greed,” said Council Member Jamal Osman, a co-author on the policy.
Throughout the legislative process, Mayor Frey has centered Uber and Lyft’s claims that the rideshare companies would leave the city if they are required to pay their drivers the local minimum wage. Other cities have faced these claims and grappled with deciding between prioritizing profits for billion-dollar corporations or living wages and basic rights for workers. Minneapolis proudly joins others cities like Seattle and New York in siding with workers. Advancing a minimum wage for rideshare companies has also motivated several startup rideshare companies to look into getting licensed in Minneapolis, including the worker-owned Drivers Coop which currently operates in New York and Denver.
“Uber and Lyft pulled out all the stops to try and scare Council into weakening and delaying this policy, but we stood strong with drivers because we believe in people over profits. The Minneapolis City Council has often led the state when it comes to workers’ rights, and I hope that today’s vote leads the legislature to pass a statewide policy to go alongside ours,” said Council Member Jason Chavez, a co-author on the policy.
The policy was written in consultation with drivers, riders, the public, city staff, national experts, and state legislators. In August 2023, the Minneapolis City Council passed the "Fair Drives Safe Rides" ordinance that included minimum compensation, drivers’ rights, and safety protections for both drivers and riders. The Mayor vetoed that ordinance. In October 2023, Council Members Wonsley, Chavez, and Osman introduced two separate ordinances: one for minimum wage, and another for rights and protections. Following today’s minimum wage victory, the co-authors will now start working to advance the rights and protections ordinance through the legislative process.
“Rideshare companies have been growing at the expense of drivers for a decade and it’s time to start regulating them,” said Council President Elliott Payne. “Thank you to the drivers, city staff, and my colleagues for your hard work on this ordinance. I look forward to this Council continuing to pass worker protections this term so that all workers are able to live fulfilling lives in our city.”
Connect with Elliott and Ward 1 Staff
Elliott Payne was re-elected in 2023 to represent Ward 1
Elliott serves on the President of the Minneapolis City Council, Chair of the Audit Committee, member of the Public Health & Safety Committee, Budget Committee, Intergovernmental Relations Committee, and Committee of the Whole.
Contact the Ward 1 Council Office
Elliott Payne, Council Member - Email
Ben Carrier, Policy Aide - Email
Liam Davis Temple, Policy Aide - Email
Office Phone - (612) 673-2201
Visit: minneapolismn.gov/ward1
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