In a significant move to address concerns about workers' rights and fair compensation, the Minneapolis City Council voted in favor of an ordinance that establishes minimum pay requirements for rideshare drivers on Thursday. However, this decision has sparked strong opposition from major rideshare companies, Uber and Lyft, who have threatened to halt their services in the city if the ordinance takes effect.

The council's vote, which concluded with a 9-4 majority, saw council members Michael Rainville, LaTrisha Vetaw, Emily Koski, and Linea Palmisano voting against the measure. Minneapolis Mayor Jacob Frey, who publicly expressed reservations about the ordinance, is expected to veto the decision, prompting a council vote to potentially override his veto.

Under the proposed ordinance, rideshare companies operating in Minneapolis would be required to adhere to several new regulations. These include a minimum payment of $5 per trip, the requirement to pay 80% of canceled ride fees to drivers, and established driver pay rates at $1.40 per mile and 51 cents per minute.

Uber and Lyft have strongly opposed the ordinance, stating that while they support minimum pay legislation, the current form of the ordinance would hinder their ability to sustainably and affordably operate in the city. In response to the vote, Lyft released a statement urging Mayor Frey to veto the legislation and collaborate on a statewide minimum earnings standard that could accommodate the needs of all stakeholders.

Meanwhile, Uber expressed its support for comprehensive statewide legislation, aiming to ensure drivers earn a minimum of $35 per hour while maintaining their flexibility and independence. If the current ordinance is enacted, Uber has expressed willingness to work with drivers, riders, and the legislature to bring rideshare services back to Minneapolis.

During the council meeting, Council member Jamal Osman posed a thought-provoking question, questioning the ethical implications of using cheap immigrant labor to maintain low-cost rideshare services. Other council members emphasized the importance of addressing worker inequity and stressed that the ordinance would protect drivers' rights and ensure fair compensation.

Despite the strong stance taken by the City Council, the fate of the ordinance remains uncertain. Mayor Frey's looming veto raises questions about the ordinance's chances of taking effect. State lawmakers are also anticipated to discuss rideshare legislation in the coming months, following the creation of a task force aimed at constructing comprehensive regulations last year.

The effective date of the ordinance, initially set for April 1, has been delayed to May 1 to allow rideshare companies the opportunity to adjust their operations and for other interested rideshare organizations to gain a foothold in providing services within the city.

As tensions rise between the Minneapolis City Council and rideshare companies, all eyes now turn to the potential override vote and the subsequent decisions made by Mayor Frey. The statewide report, set to be released imminently, may also impact the final outcome of this contentious issue.