After threatening to pull out of Minnesota if the new minimum wage law goes into effect, Lyft has confirmed reports that the company has reached an agreement with state officials on a new minimum wage lower than what was proposed in 2019. The Minneapolis bill was scheduled to take effect July 1.
CNN reported that Uber also participated in the settlement, but the company did not immediately respond to a request for confirmation.
Rideshare drivers statewide would be paid $1.28 per mile and $0.31 per minute (or $5 per ride, whichever is greater), which overrides Minneapolis' proposed higher rates of $1.40 per mile and $0.51 per minute. The new rates will take effect in January, according to the AP.
“We have long supported minimum earnings standards and increased driver pay in a smart and prudent way,” Lyft said. “That’s why earlier this year we announced a new commitment requiring drivers to always earn at least 70% of their weekly passenger fare after outside commissions.” That’s why we made the announcement,” Lyft said. he said in a statement. “This bill builds on these efforts and represents an important compromise that will ensure Minnesota rideshare drivers can continue to earn money with Lyft. Through direct engagement with all stakeholders, we will deliver new pay increases for drivers and passengers. “We found enough common ground to balance this affordability, pay for and preserve services.”
Minneapolis Driver Pay Act Delayed to July 1