New statewide minimum compensation for transportation network company drivers

As of Dec. 1, transportation network company drivers now earn a minimum compensation rate of $1.28 per minute and 31 cents per mile for time with a passenger in their car.

In May 2024, Gov. Tim Walz signed into law new protections for transportation network company (TNC) drivers that provide a minimum compensation rate, greater pay transparency, increased insurance coverage and a new partnership with local organizations to provide assistance to drivers.

The new law came after a year of task force meetings facilitated by the Department and Labor and Industry (DLI) and countless hours of input from drivers, stakeholders, TNC representatives, and legislative and local leaders. The expansion of workers' rights to TNC drivers builds on Minnesota's commitment to be the best place in the country for working families.

"TNC drivers and stakeholders showed up to advocate and the result was new legislation that increased driver benefits and protections," said Nicole Blissenbach, DLI commissioner. "Our agency is now working to educate drivers and work with the TNCs, so the law works as intended."

To ensure drivers earn the minimum compensation rate, every 14 days, TNCs will review drivers' individual trip and earnings records. If they did not meet the minimum rate of pay over that time period, the TNC will provide a supplemental payment to make up the difference no later than the next earnings period. All tips belong to the driver and are not counted toward the minimum compensation.

To incentivize more accessible rides, TNCs will pay drivers an additional 91 cents a minute if they drive a wheelchair-accessible vehicle.

The new pay transparency provisions require TNCs to provide drivers with a trip receipt within 24 hours of the trip completion and weekly summaries that include the driver's total earnings before tips, total trip time and trip miles, total fares and fees paid by passengers, and the driver’s total time on the TNC's app.

DLI has enforcement authority to ensure the minimum compensation rate and pay transparency provisions of the law are met. DLI has created materials for education and outreach and will work with drivers and TNC companies to ensure compliance and understanding of the new law. The minimum compensation rate will be adjusted for inflation beginning in January 2027.

The new law also includes requirements for TNCs to provide a deactivation policy and appeals process and contract with a local organization for driver assistance. More information is available on the DLI website at dli.mn.gov/tnc.

The insurance provisions of the bill will take effect Jan. 1.

Media contact:  James Honerman at james.honerman@state.mn.us or 651-284-5313.