Minnesota Governor Tim Walz vetoes rideshare driver bill after Uber threatens to halt operations around Twin Cities

Democratic Minnesota Gov. Tim Walls has vetoed a bill that would have set a minimum wage for rideshare drivers after Uber threatened to stop operating outside of Minnesota — in Minnesota. PAUL METROPOLITAN AREA — If the bill had been signed.

In a letter on Thursday Announcement veto, Waltz said “rideshare drivers deserve fair wages and safe working conditions,” but said “this is not the right bill to achieve those goals.”

He also argued that the bill would make Minnesota “one of the most expensive states in the country for ride-sharing.”

According to CBS Minnesota, Walls’ first veto as governor. This was stated in a statement provided by an Uber spokesperson. CBS Minnesota Early Thursday that the company would stop operating outside the Twin Cities starting Aug. 1 if House File 2369 became law, moreover, it would limit its services in the Twin Cities to “offering only premium products to meet the premium prices required by the bill.”

The bill easily passed both houses of the Democratically controlled Minnesota Legislature in party-line votes over the weekend.

“After months of unanswered requests and working with lawmakers on comprehensive legislation that provides flexibility and benefits to drivers without compromising service to riders, we are left with a bill that That would make it impossible to continue service in much of the state,” said Uber spokesman Freddie Goldstein.

Under HF 2369, rideshare drivers would receive “minimum compensation” of at least $1.45 per mile and another 34 cents per minute for all trips in the Twin Cities area. For rides outside the Twin Cities, drivers will receive at least $1.25 per mile and 34 cents per minute. These rates are also adjusted for inflation every year.

Rideshare drivers across the country have fought for better pay and benefits for years. In November 2020, California voters Approved A controversial state proposal that would have exempted Uber, Lyft and other app-based platforms from classifying their drivers as employees Independent contractor. The change would require companies to provide benefits such as sick leave and health insurance.

Last year, Washington state passed one Similar law In Minnesota’s bill, which requires rideshare drivers to pay $1.50 per mile and 64 cents per minute in Seattle and $1.27 per mile and 37 cents per minute outside of Seattle. Rideshare companies are also required to provide drivers with sick leave and workers’ compensation.

In 2018, New York City Became First US city to set minimum wage for rideshare drivers By 2023, they Description Trips within New York City are $1.31 per mile and 56 cents per minute. The rate goes up to $1.70 per mile for wheelchair accessible vehicles. Both rates increase for trips outside the city.