Minnesota’s 2024 rideshare compromise gave drivers a statewide minimum pay floor and new protections, while replacing Minneapolis’s higher local pay ordinance with lower statewide rates. Uber and Lyft, which had threatened to leave, said they would stay after the law passed. The companies forecast higher rider prices, but the available sources do not establish whether fares actually rose or by how much.
What the Minnesota deal changed
In 2024, Minneapolis approved a rideshare pay ordinance requiring at least $1.40 per mile and $0.51 per minute while transporting a passenger, or $5 per ride, whichever was greater. Uber and Lyft threatened to leave the city. The Legislature then adopted a statewide compromise with lower minimum rates, displacing Minneapolis’s pay rule while establishing one standard across Minnesota. After the law passed, both companies said they would continue operating in the state, according to the Associated Press.
The deal was a trade-off: drivers gained a statewide compensation floor and procedural protections; the companies avoided the higher Minneapolis rates and the threat of the city’s rules applying to them. Minneapolis lost its local pay standard. An Axios account also described limits on local governments’ ability to demand company data, but the precise legal scope should be taken from the enacted law, not inferred from that summary.
How much Minnesota Uber and Lyft drivers must be paid
For passenger trips through Dec. 31, 2026, Minnesota’s Department of Labor and Industry (DLI) lists a minimum of $1.28 per mile and $0.31 per minute, with a $5 minimum for each passenger trip. These are alternative measures of the minimum compensation floor, not a guarantee that every driver’s total earnings will equal a particular hourly amount. The floor applies while a passenger is in the vehicle; it does not cover all time a driver may spend logged into an app, waiting for a request, or driving to a pickup.
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Tips are not counted toward the minimum and belong entirely to the driver. If a driver’s earnings for a pay period fall short of the required minimum, the company must make a supplemental payment in the next pay period. DLI also specifies an additional $0.91 per mile for a vehicle with a wheelchair securement device, whether or not the device is used on a particular trip. These requirements and the payment mechanics are set out on DLI’s TNC driver protections page.
The rates are scheduled to adjust on Jan. 1, 2027. DLI’s announced inflation adjustment raises the standard floor to $1.33 per mile, $0.32 per minute, and $5.20 per ride. The wheelchair-securement supplement will rise to $0.95 per mile, making the total mileage minimum for such a vehicle $2.28. These are announced future rates as of Oct. 8, 2026, not the rates in effect through the end of 2026.
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What protections came with the pay floor
The state’s rules also require more information about offers and completed work, a process for challenging deactivation, and insurance requirements. DLI says the minimum pay and pay-notice, deactivation, and driver-advocacy requirements began Dec. 1, 2024; the new insurance requirements began Jan. 1, 2025. The agency’s implementation announcement describes the statewide protections.
- Information before accepting work: Drivers receive estimates of pickup and passenger-trip time and distance, along with compensation information.
- Trip and weekly records: A digital receipt is due within 24 hours of a trip. Weekly summaries include app time, trip time and distance, rider payments, and driver payments.
- Deactivation process: Companies must have a deactivation policy and an appeal process.
- Driver advocacy: The law provides for a local driver advocacy organization.
- Insurance: New insurance requirements took effect Jan. 1, 2025.
Did rider fares rise after the law?
There is no measured fare increase established by the cited sources. When the compromise passed, an Uber spokesperson told the AP that prices were expected to increase, but did not give an estimate. That is a company forecast, not evidence of what riders ultimately paid after the law took effect.
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The limits in the available data matter: DLI’s analysis said Uber and Lyft did not provide fare and commission data, restricting the state’s ability to analyze possible effects of pay standards on fares and rider demand. The report is useful for understanding the debate, but it does not resolve the post-law fare question.
What the earnings figures do—and do not—show
The DLI analysis used 2022 trip and driver-survey data. It counted more than 18 million completed Minnesota transportation-network-company trips that year, using trip data supplied by Uber and Lyft, and surveyed more than 1,800 Minnesota drivers. The figures offer pre-law context rather than a measure of what drivers earn under the new rules.
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Reporting on the analysis, the AP said half of Twin Cities Uber and Lyft drivers in the study earned $13.63 per hour or less after expenses; elsewhere in Minnesota, half earned $8.12 per hour or less after expenses. Those study-period estimates cannot be treated as current post-law earnings or as proof that the law raised drivers’ take-home pay. The underlying DLI report is available through the Legislative Reference Library.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why Minneapolis lost its local pay rule
The statewide law resolved a confrontation between Minneapolis’s higher local rates and the companies’ threat to leave. A statewide minimum preserved a pay floor for drivers across Minnesota while avoiding the city’s more expensive ordinance for the platforms. The result also reduced Minneapolis’s ability to set its own pay standard for these rides, even as the law added protections that applied statewide.
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The public statements at passage captured both sides of the compromise. Minnesota Uber/Lyft Drivers Association president Eid Ali called it “an amazing victory for drivers.” Uber spokesperson Josh Gold said the new rate “will allow us to continue to operate” in Minneapolis and throughout the state. Lyft spokesperson CJ Macklin said, “we have found enough common ground to balance a new pay increase for drivers with what riders can afford to pay and preserve the service.” These statements describe the parties’ positions at the time; they do not establish later earnings or fare outcomes.
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