Minneapolis Rideshare Minimum Wage Law Facing Possible Delay
City Council Members Push for Extension
With a vote coming up this week, City Council President Elliott Payne and Council Members Katie Cashman and Aurin Chowdhury are seeking to postpone the implementation of Minneapolis’ new rideshare minimum wage law. They aim to push back the effective date by two months, to July 1. The proposed delay would provide the Council Members an opportunity to collaborate with state lawmakers and also give more time to new rideshare startups looking to enter the metro market.
Growing Concerns and Advocates’ Reaction
The new rideshare ordinance, which was passed last month despite Mayor Jacob Frey’s veto, has been causing increasing consternation among local businesses, disability and senior advocates. As the start date of May 1 approaches, there is a surge in opposition and concerns coming from various groups, emphasizing the need for a reconsideration of the law.
Call for Reconsideration
Amidst the mounting pressure, Council Member Andrea Jenkins, who initially supported the ordinance, has requested the Council to hold a vote to reconsider it during this week’s meeting. It is expected that Payne, Cashman, and Chowdhury, who are open to changes, will provide the necessary votes to enact the delay.
Desire for Collaborative Solutions
In a joint statement, Payne, Cashman, and Chowdhury expressed their intentions for the delay, stating, “This is a good faith extension for us as Council Members to work on our legislative process, collaborate with leaders in the state, ensure drivers have the fair compensation they need, and support emerging rideshare companies and riders adopting them.” They also urged Uber and Lyft to prioritize fair treatment and adequate pay for their workers.
Uber’s Response and Future Implications
Uber spokesman Josh Gold responded to the proposal by stating that if the effective date is pushed back, the company will continue its operations in Minneapolis until July 1. Gold also mentioned that the proposed delay provides an opportunity to work towards a comprehensive statewide solution that would ensure better pay for drivers while keeping rides affordable.
Rideshare Landscape and New Entrants
Notably, four new rideshare companies have already applied for licenses to operate in Minneapolis. However, the licensing process is still underway, and none have completed it as of now. The delay in implementation could give these startups an opportunity to fulfill the required procedures and recruit drivers.
Additional Proposals for Consideration
In addition to the delay, there are several proposed amendments to the ordinance. Council Members Robin Wonsley, Jason Chavez, and Jamal Osman have stated their support for delaying implementation until July 1. However, they emphasize that they will not support any changes in the wage rates if it means that drivers would continue to be paid below Minneapolis’ minimum wage.
Furthermore, Council Members Jenkins and Emily Koski are planning to propose an amendment to set the ordinance rate at $1.21 per mile while maintaining the per-minute rate of 51 cents, as recommended in a state labor report. They also intend to conduct evaluations six months and one year after the implementation date.
These proposed changes have sparked debates about the various rate options and their potential impact on drivers and the rideshare market.
