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Minimum compensation and insurance for ride-sharing drivers recommended by government committee

by Celia

A committee tasked with recommending a state policy to provide protections and higher pay for ride-share drivers finalised a handful of draft recommendations at the committee’s final meeting on Tuesday, but couldn’t reach much agreement on key areas such as compensation.

The committee’s recommendations and data analysis will be presented to the state legislature by 1 January. The committee was formed after Governor Tim Walz vetoed legislation that would have increased pay and protections for rideshare drivers. The recommendations are intended to inform legislative action next session.

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The committee, made up of state lawmakers, officials and representatives from both rideshare companies and drivers, failed to make much progress on the core issue of minimum compensation for drivers.

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The rideshare companies offered $40 an hour as a starting point, but advocates for rideshare drivers wanted a set minimum wage per minute and per mile, which the rideshare companies said they weren’t willing to do without more analysis. They did agree that drivers should receive a minimum of $5 for each trip.

All parties agreed on a number of other provisions, including the principle that tips are the driver’s property and should not be counted against any future minimum wage. They also agreed that the minimum wage should be adjusted annually, in line with the national minimum wage.

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The committee also unanimously recommends that ride-sharing companies provide insurance to drivers for injuries not covered by car insurance, such as assault by a driver.

They’re also recommending that the insurance should compensate drivers for lost wages due to injuries and medical expenses. In the event of a driver’s death on the job, companies would provide survivor benefits of up to $1 million.

The board was created by an executive order signed by the governor at the end of May and is made up of 15 members, ten of whom were appointed by the governor. They began meeting in July and only made recommendations on which all parties could agree.

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