Mayor Frey Vetos Minimum Wage Bill For Uber, Lyft Drivers

MINNEAPOLIS — Minneapolis Mayor Jacob Frey on Tuesday vetoed a bill that would have required Uber and Lyft to pay their drivers a minimum wage. Lyft and Uber threatened to leave Minneapolis if the city went ahead and enacted the ordinance.

The mayor’s veto comes three months after Gov. Tim Walz vetoed a similar bill after it passed the Minnesota Legislator. Uber and Lyft threatened to leave Minnesota if that measure was enacted.

The bill stated that an Uber, Lyft, or other similar type of driver:

Shall be paid at least one dollar forty cents ($1.40) per mile and fifty-one cents ($0.51) per minute for the time transporting a rider, subject to annual adjustment as provided by this section, or five dollars ($5.00), whichever is greater. Minimum compensation is due only for the portion of the ride that occurs within the city.

Read the entire ordinance here.

Frey's office said the ordinance was passed by members with unknown effects on driver pay, safety, and the future of rideshare in the city.

"Over the past couple weeks, I have spoken with drivers, riders, advocates, business associations, labor unions, and rideshare companies alike – and from the feedback we gathered, it’s clear we need more time to get this right," Frey said in a statement.

"In the coming weeks, we will work in partnership with all stakeholders to do our homework, deliberate, and make sure we put together an ordinance that is data-driven and clearly articulates policies based on known impacts, not speculation."

While vetoing the ordinance, Frey also announced he secured a commitment from Uber that guarantees drivers will earn at least Minneapolis minimum wage, which is 15.19. A similar commitment with Lyft has not been announced.

Meanwhile, Minneapolis City Councilmember Robin Wonsley — lead author of the ordinance — called Frey's veto "an inexcusable betrayal of Minneapolis workers."

"The ordinance was developed over eight months of consultation with drivers, city staff, and national experts," Wonsley said. "As a Council Member, Jacob Frey voted to approve a $15 minimum wage, but evidently he is ready to abandon any commitment to living wages or workers’ rights under the pressure of lobbying by multibillion-dollar out-of-state corporations."

Advocates in the City Council are unlikely to come up with the votes to override Frey's veto. The ordinance passed 7-5, but nine votes will be needed to override.