No. Uber and Lyft threatened to leave Minneapolis in March 2024 over the city’s rideshare pay ordinance, but they did not follow through. A statewide compromise kept both companies operating in Minnesota and replaced the city-rate dispute with statewide minimum-pay rules effective December 1, 2024.
What happened to the threatened Minneapolis exit?
On March 14, 2024, the Minneapolis City Council voted 10–3 to override Mayor Jacob Frey’s veto and adopt a rideshare pay ordinance. Lyft called the measure “deeply flawed” and said it would shut down Minneapolis operations when the ordinance took effect. Uber also threatened to end service in Minneapolis, St. Paul, and the wider Twin Cities area, including Minneapolis–Saint Paul International Airport. Those were conditional threats, not completed departures. The Associated Press reported the companies’ positions at the time.
Minneapolis delayed implementation in April while officials and state legislators worked on a broader solution. In May, a statewide compromise was reached, and Uber and Lyft said they would stay in Minnesota. The statewide law took effect on December 1, 2024, averting the threatened withdrawal under the city ordinance.
How the city proposal, state law and earnings study differ
The March 2024 dispute involved competing approaches to driver compensation. The Minnesota Department of Labor and Industry (DLI) had commissioned an earnings study that included a proposed pay-standard option; that option was not itself a law. The city later adopted its own ordinance, and Minnesota ultimately enacted a statewide standard.
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| Measure | Per mile | Per passenger minute | Minimum per passenger trip | Scope and status | Tips |
|---|---|---|---|---|---|
| Minneapolis ordinance adopted March 14, 2024 | $1.40 | $0.51 | $5 | Passenger portions of rides within Minneapolis; city ordinance, whose implementation was delayed | Excluded from the minimum |
| DLI report’s base Twin Cities option | $0.89 | $0.487 | Not stated in the report option | Researched pay-standard option for the Twin Cities, not enacted law | Not stated as a separate rule for the option |
| Minnesota statewide minimum, effective December 1, 2024 | $1.28 | $0.31 | $5 | Statewide enacted law; minimum applies while a passenger is in the vehicle | Additional to minimum compensation and excluded when checking whether the minimum was met |
The city described its rates as approximating Minneapolis’s $15.57 minimum wage. The DLI report’s base option used rates scaled to passenger miles and time while accounting for vehicle costs and time drivers spent available or en route; it should not be read as the final city or state rule. The city rates are documented in Minneapolis’s account of the March vote, and the enacted statewide rates appear in the 2024 Minnesota session law.
What the driver earnings study found—and what it did not
A DLI-commissioned report by James Parrott of The New School and Michael Reich of the University of California, Berkeley, was published March 8, 2024. It analyzed company-supplied data on more than 18 million Minnesota rides in 2022 and included a survey completed by 1,827 drivers. For Twin Cities drivers, the report estimated median net earnings after expenses of $13.63 per working hour in 2022. It estimated that 25% earned $10.54 or less per hour after expenses.
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These are estimates based on 2022 activity, not measurements of what drivers earn today. “Net” here means after expenses; it is not the same as gross passenger fares or a guaranteed wage. The report and its methods are available in the Minnesota DLI earnings report.
How Minnesota’s current minimum-pay rules work
DLI guidance says the state minimum applies while a driver has a passenger in the vehicle. Companies compare a driver’s earnings, excluding tips, with the required minimum for each pay period. If the amount falls short, the company must provide supplemental payment in a subsequent pay period. Tips belong to the driver in addition to minimum compensation.
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- The minimum is calculated using passenger-trip miles and minutes, with a $5 minimum per passenger trip.
- Tips do not count toward meeting the minimum and are paid on top of it.
- The rules require driver notices and ride records.
- The law does not define transportation network company drivers as employees of the companies.
That passenger-time minimum is not a net hourly wage guarantee: it does not promise a particular take-home amount for every hour a driver is logged in, waiting, or traveling without a passenger. Consult DLI’s transportation network company driver guidance for the state’s implementation details.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Rates scheduled to change in 2027
As of October 8, 2026, DLI lists an inflation adjustment scheduled for January 1, 2027: $1.33 per mile, $0.32 per minute, and a $5.20 minimum per passenger trip. Those are future rates, not the rates in effect on October 8, 2026. Check DLI’s current guidance for the applicable rates after the adjustment date.
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