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The Minnesota Senate handed a invoice on Sunday that may assure drivers for Uber and Lyft a minimal wage and different advantages, sending the measure to Gov. Tim Walz.
The slender passage, a 35-32 vote after an earlier 69 to 61 approval from the state’s House of Representatives, capped a dramatic week of political maneuvering so the invoice would clear the legislature earlier than the session ends on Monday. Drivers for Uber and Lyft are generally known as gig staff as a result of they’re handled as unbiased contractors, which means they’re liable for their very own bills and will not be assured a minimal wage, well being care or different advantages.
If the laws is signed by the governor, it’ll require Uber and Lyft to pay their drivers at the very least $1.45 per mile they drive a passenger — or $1.34 per mile outdoors the Minneapolis-St. Paul area — in addition to $0.34 per minute. It additionally establishes an appeals course of by way of which drivers can request a assessment in the event that they really feel they’ve been improperly deactivated from the platforms, and requires extra transparency round how drivers’ earnings are calculated.
Mr. Walz has known as the invoice “an important piece of legislation,” however has additionally mentioned that extra conversations must occur earlier than he commits to signing it.
The invoice is a uncommon win for labor advocates in what has develop into a protracted, multistate battle over the rights of gig drivers and their standing within the economic system. Uber and Lyft have lengthy argued that their drivers are unbiased contractors relatively than workers. They say that drivers desire being contractors as a result of it permits them the flexibleness to decide on after they work, and plenty of drivers work solely part-time.
But labor advocates contend that drivers are exploited by the businesses and are being misclassified as unbiased despite the fact that the ride-hailing providers exert vital management over their work.
The federal authorities has largely prevented weighing in on the talk, and the U.S. Department of Labor has not sued or focused Uber or Lyft for misclassifying staff. Instead, the problem has performed out in state courts and legislatures and on poll measures.
New York City and Seattle have handed legal guidelines guaranteeing minimal wages for gig drivers, whereas the businesses have prevailed in getting their most popular guidelines on the books in California and the remainder of Washington state. Both states enacted legal guidelines that assure drivers some advantages, like a minimal wage, but in addition preclude them from changing into workers. An analogous, company-backed effort was thrown out by judges in Massachusetts final yr.
Senator Omar Fateh, one of many invoice’s authors, cheered its passage. “These workers deserve a livable wage to provide for themselves and their families.”
Mr. Fateh and gig drivers from the Minnesota Uber/Lyft Drivers Association, a bunch supporting the invoice, celebrated outdoors the legislative chamber on Sunday.
Uber mentioned it was disenchanted by the invoice’s passage. “For months, we have begged legislators to work with us on a compromise that raises rates for drivers without hurting riders, and for months our pleas were ignored,” Freddi Goldstein, a spokeswoman mentioned, including, “We hope Governor Walz will reject this bill.”
Uber and Lyft have argued that the invoice raises wages too excessive, and that the deactivation appeals course of would restrict their means to bar drivers who’ve been accused of misconduct.
The firms say the additional prices can be handed on to riders, forcing them to pay extra, they usually have as a substitute proposed a assure of $1.17 per mile, in addition to $0.34 per minute. Uber has mentioned it might cut back service in Minnesota — a risk it has made up to now in different states. Lyft made an identical risk in a letter to the governor, and mentioned on Sunday, “We ask that Governor Walz veto the bill and create a task force to properly study the best way to protect drivers while still safeguarding the affordability of the service.”
“If this bill were to pass, we would unfortunately have no choice but to greatly reduce service throughout the state, and possibly shut down operations entirely,” Uber mentioned in a message to its Minnesota prospects.
Lyft warned its prospects that their fares might greater than double if the invoice is enacted, turning “ride share into an expensive luxury.”