Home Technology Minnesota Passes Bill Seeking to Ensure Minimum Wage for Gig Workers – UnlistedNews

Minnesota Passes Bill Seeking to Ensure Minimum Wage for Gig Workers – UnlistedNews

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Minnesota Passes Bill Seeking to Ensure Minimum Wage for Gig Workers – UnlistedNews

The Minnesota Senate on Sunday approved a bill that would guarantee Uber and Lyft drivers a minimum wage and other benefits, sending the measure to Gov. Tim Walz.

The narrow passage, a 35-32 vote after an earlier 69-61 passage by the state House of Representatives, capped a dramatic week of political maneuvering to get the bill through the legislature before the end of the session on Monday. Uber and Lyft drivers are known as temporary workers because they are treated as independent contractors, which means they are responsible for their own expenses and are not guaranteed a minimum wage, health care or other benefits.

If the governor signs the legislation, it will require Uber and Lyft to pay their drivers at least $1.45 per mile they drive a passenger, or $1.34 per mile outside of Minneapolis-St. Paul’s region, as well as $0.34 per minute. It also establishes an appeals process through which drivers can request a review if they feel they have been improperly deactivated from the platforms, and requires additional transparency into how driver earnings are calculated.

Mr. Walz has called the bill “an important piece of legislation”, but it has also saying that more talks are needed before he commits to signing it.

The bill is a rare victory for labor advocates in what has become a protracted, multi-state battle over drivers’ rights and their status in the economy. Uber and Lyft have long argued that their drivers are independent contractors rather than employees. They say drivers prefer to be contractors because it allows them the flexibility to choose when to work, and many drivers work only part-time.

But worker advocates argue that companies exploit drivers and misclassify them as self-employed despite the fact that transportation services exercise significant control over their work.

The federal government has largely avoided intervening in the debate, and the US Department of Labor has not sued or targeted Uber or Lyft for misclassifying workers. Instead, the problem has played out in state courts and legislatures and on ballot measures.

New York City and Seattle have passed laws guaranteeing minimum wages for concert conductors, while companies have prevailed by getting their preferred rules off the books in California and the rest of Washington state. Both states have enacted laws that guarantee drivers some benefits, such as a minimum wage, but also prevent them from becoming employees. A similar company-backed effort was thrown out by judges in Massachusetts last year.

Senator Omar Fateh, one of the bill’s authors, applauded its passage. “These workers deserve a living wage to support themselves and their families.”

Mr. Fateh and concert drivers from the Minnesota Uber/Lyft Drivers Association, a group that supports the bill, celebrated in front of the legislative chamber on Sunday.

Uber said it was disappointed by the passage of the bill. “For months we have begged lawmakers to work with us on a compromise that would increase rates for drivers without hurting passengers, and for months our pleas were ignored,” said Freddi Goldstein, a spokeswoman, adding: “We hope that Governor Walz reject this proposal.” bill.”

Uber and Lyft have argued that the bill raises wages too much and that the deactivation appeals process would limit their ability to ban drivers accused of misconduct.

The companies say the extra costs would be passed on to passengers, forcing them to pay more, and instead proposed a guarantee of $1.17 per mile, as well as $0.34 per minute. Uber has said it may reduce service in Minnesota, a threat it has made in the past in other states. Lyft made a similar threat in a letter to the governor, saying Sunday: “We ask Governor Walz to veto the bill and create a task force to properly study how best to protect drivers while safeguarding the service affordability.

“Should this bill pass, we would unfortunately have no choice but to greatly reduce service across the state and possibly shut down operations entirely,” Uber said in a message to its Minnesota customers.

Lyft has warned its customers that their fees could more than double if the bill is enacted, turning “rideshare into an expensive luxury.”

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