NEWS RELEASE
Rep. Hodan Hassan
Minnesota House of Representatives
District 62B – 651-296-0294 – rep.hodan.hassan@house.mn.gov
597 State Office Building, St. Paul, MN 55155
FOR IMMEDIATE RELEASE
CONTACT: Marlee Schlegel
651-296-9873 or marlee.schlegel@house.mn.gov
May 17, 2023
House Commerce Committee approves legislation to improve working conditions for rideshare drivers, referred to general register
Saint Paul, Minn. – Today, the Minnesota House passed legislation to increase protections for drivers of technology network companies, commonly known as rideshare companies. These companies, such as Uber and Lyft, hire drivers as independent contractors. This leaves drivers responsible for both employer and employee taxes and expenses, exempts the company from providing benefits, and excludes drivers from many standard workplace protections. In addition to payout cuts, this has left most rideshare drivers earning less take-home pay than they did 10 years ago, despite the increase in rideshare popularity and inflation.
The bill is authored by Rep. Hodan Hassan (DFL – Minneapolis). She released the following statement:
“Tonight, we are sending a message that says the era of large corporations getting away with exploiting workers is over. We will not tolerate bad actors exploiting hardworking Minnesotans to pad their corporate pockets. If your business relies on keeping your workers in poverty, you don’t have a viable business model, and you need to do better here in Minnesota. Rideshare companies have successfully made these changes in other states who have put their foot down to their unethical operations, and now, Minnesota will join the ranks and say ‘enough.’”
In committee, Uber claimed their drivers are fairly compensated, with Uber taking only a 19% cut of ride costs. However, many drivers testified in committee to say Uber’s cut frequently exceeds 70% of what customers pay. Additionally, TNC companies’ insurance help cover drivers who get in an accident while working, but their policies will not pay a dime to drivers who are victims of violent, targeted attacks while on the job, which are on the rise. Additionally, drivers have reported being deactivated due to a single complaint from a rider, declining a ride, or for no visible reason at all. When deactivated without warning, drivers are almost always denied an explanation.
House File 2369 creates requirements for TNC companies to promptly communicate with drivers who are deactivated and either work with them to be reinstated or provide evidence of wrongdoing. It also establishes minimum compensation rates for drivers and requires TNC companies to provide drivers with a detailed breakdown of mileage, travel time, and minimum compensation before accepting a ride request, as well as a receipt after the ride is complete. The bill also establishes a road for drivers to take legal action against rideshare companies who violate the bill. The bill is not inclusive of food delivery drivers.
You can view the Floor Session on the Minnesota House YouTube Page. The bill awaits action on the Senate Floor.
###