DLI releases analysis of TNC driver earnings and Minnesota-specific data to support a pay standard

The Minnesota Department of Labor and Industry (DLI) has released a report of the earnings, working conditions and options for pay standards for transportation network company (TNC) drivers. As required by Executive Order 23-07, issued by Gov. Tim Walz, the report details the findings of the study and driver survey and offers a range of pay standard options.

The report analyzes trip data from a 2022 data set of more than 18 million rides and includes input from a survey of more than 1,800 TNC drivers. The driver earnings analysis and pay standard options build on the consensus recommendations advanced by the Committee on the Compensation, Wellbeing, and Fair Treatment of Transportation Network Company Drivers, which met regularly from July through December 2023.

"This report costs out a variety of options and brings Minnesota-specific data to the conversation about a potential pay standard for TNC drivers. This level of detail, including an analysis specific to Greater Minnesota, is new for our community. I hope the report will help achieve a policy solution informed by data and stakeholder input," said DLI Commissioner Nicole Blissenbach.

The report details actual driver earnings in Minnesota after taking into consideration the sum of time a driver spends waiting for a ride assignment, driving to pick up the passenger and transporting the passenger to their destination.

In line with the committee/s recommendation, the pay standard options are presented in a per mile and per minute format to be paid during the time a driver is transporting a passenger. The analysis scales the possible pay standard options based on the drivers' time waiting, driving to pick up the passenger and transporting a passenger.

The per minute rate of 48.7 cents per minute in the Twin Cities metropolitan area and 42.7 cents in Greater Minnesota, allows for a minimum wage compensation commensurate with the relevant minimum wage ($15.57 in Minneapolis and $10.85 in Greater Minnesota). The per mile options to cover expenses range from a base of 89 cents per mile in the Twin Cities metropolitan area that covers vehicle and necessary expenses, to $1.207 per mile that covers base expenses and additional more comprehensive benefit expenses.

In Greater Minnesota, the per mile option to cover vehicle and necessary expenses is $1.117 and the comprehensive benefit expense option is $1.393. The higher per mile rate reflects shorter distances of passenger trips in Greater Minnesota and longer distances drivers travel to pick up passengers. Each of these increase the scaling factor.

Ninety-five percent of all TNC trips in Minnesota occur in the Twin Cities seven-county metropolitan area and 5% in Greater Minnesota.

The complete report is available at dli.mn.gov/sites/default/files/pdf/TNC_driver_earnings_analysis_pay_standard_options_report_030824.pdf.

News media contact:  James Honerman, DLI, at 651-284-5313 or james.honerman@state.mn.us.