A bill for an act
relating to labor; establishing protections for transportation network company
drivers; proposing coding for new law as Minnesota Statutes, chapter 181C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) For the purposes of this chapter, the following terms have the meanings given.
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(b) "Deactivation" means the suspension or termination of a driver's ability to receive
connections to potential riders, packages or related services from a transportation network
company.
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(c) "Digital network" means any online-enabled application, software, website, or other
system offered or utilized by a transportation network company that enables the
prearrangement of rides or delivery of packages by transportation network company drivers.
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(d) "Prearranged ride" or "ride" and "prearranged package delivery" or "delivery" means
the provision of transportation by a driver to a rider or a package, beginning when driver
accepts a request to transport the person or package through a digital network controlled
by a transportation network company, continuing while the driver transports the rider or
package, and ending when the last requesting rider or package departs the vehicle.
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(e) "Transportation network company" or "TNC" means a corporation, partnership, sole
proprietorship, or other entity that provides transportation services in this state and that uses
a digital network to connect TNC riders or package deliveries to TNC drivers who provide
prearranged rides or prearranged package delivery. A TNC does not include taxicabs,
limousines, for-hire vehicles, or a private passenger vehicle driven by a volunteer driver.
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(f) "Transportation network driver" or "driver" means an individual who receives
connections to potential riders, packages, or related services from a TNC in exchange for
payment.
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A TNC must:
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(1) provide insurance that fully covers any injuries sustained by a driver while the driver
is picking up or transporting passengers or packages, driving between transporting riders
or packages, or waiting to receive from the TNC a new contact to transport riders or packages.
The insurance shall be payable to the driver or to the driver's beneficiaries. This insurance
must give coverage to a driver at least equal to that provided under workers' compensation
insurance as allowed under chapter 176; and
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(2) provide all insurance necessary for the protection of the transporting vehicles and
of passengers or third parties while the driver is picking up or transporting passengers or
packages, driving in between pickups, or waiting for a new contact from the TNC for the
transport of riders or packages. This insurance must also cover all types of injuries or
damages required by the insurance laws of this state for vehicles engaged in transporting
packages, including as required under chapter 65B.
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(a) All fees provided in this section must be calculated on a per-trip basis and may not
be combined.
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(b) Minimum compensation paid by a TNC shall be as follows:
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(1) at least $2.55 per mile and 65 cents per minute to all drivers for the time transporting
a passenger or package, unless surge or other enhanced billing is in effect, in which case
the driver shall also be paid 85 percent of any additional fee or fare charged to the rider or
package sender on top of their regular mile and minute fees paid on a per-trip basis;
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(2) a $10 cancellation fee when a cancellation occurs after the driver has already departed
to pick up the rider or package;
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(3) $1.25 per mile and 20 cents per minute if a driver must drive more than five miles
to pick up a person or package or for the next pickup while a driver is traveling empty to
pick up the passenger or package. Upon pickup, compensation shall revert to the
compensation under clause (1); and
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(4) a minimum fee of $6.50 for any transport of a rider or package to a driver.
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(c) A TNC that uses its software or collection technology to collect fees or fares, whether
the fees or fares are actually collected, must still pay a driver the fees or fares earned by the
driver.
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(d) A TNC must provide to the applicable driver all tips that a passenger or sender of
packages provides within one week following the ride or package transport.
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(e) Beginning July 1, 2024, and each July 1 thereafter, the fares and fees provided in
this section are subject to an automatic annual adjustment equal to the cost-of-living
percentage published by the United States Department of Labor.
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(a) A TNC shall pay reimbursement of costs as follows:
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(1) ten cents per mile for fuel or energy costs and all tolls or fees required to make the
trip when a driver is driving to pick up, transporting, or waiting to pick up packages or riders
for all assigned trips by the TNC;
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(2) 31 cents per mile for wear and tear on the vehicle used to transport riders or packages
for the use of the driver's own vehicle. This figure shall be automatically adjusted whenever
the Internal Revenue Service indicates an adjusted amount per mile for business use of
vehicles to half that per-mile amount;
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(3) if circumstances require the use of a truck or specialized vehicle, the rate per mile
shall be 25 percent above the amount for vehicles; and
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(4) the purchase of any vehicle equipment recommended or required by the TNC.
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(b) A TNC may not receive any compensation from a car rental company or other product
provided to a driver.
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(a) A TNC must have clear written rules stating the circumstances under which a driver
may be deactivated or sanctioned, either permanently or temporarily. These rules and any
updates must be available both online and in written form to the drivers at least 30 days
before they are enforceable.
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(b) Deactivation for more than three days may only be as a consequence of a major
infraction that occurred while driving. The circumstances constituting a major infraction
must be clearly stated in the rules and are limited to driving while impaired; reckless or
careless driving; unprovoked assault; theft; sexual, racial, or other illegal harassment initiated
by a driver; and any felony committed by a driver while driving.
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(c) Infractions that are not a major infraction cannot be combined to cause a deactivation
of more than three days unless the driver establishes a clear pattern of disregard for the
interest of passengers or the obligations of the driver after at least three written warnings
about the behavior.
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(d) A TNC must provide the driver and the driver resource center with a written account
of the basis for any proposed deactivation or other sanction, including the rule or rules the
TNC claims have been violated. The driver must have the opportunity to present their
position and any other relevant information or witnesses regarding the alleged infraction
prior to deactivation or a sanction being imposed. The TNC must consider the information
provided by the driver. The burden of persuasion for any rule violation is more likely than
not and must be based on substantial, credible evidence. For a deactivation to occur it must
be a reasonable action based on the totality of the circumstances. A decertification hearing
must occur within ten days of a TNC becoming aware of an alleged violation. A traffic
ticket or other traffic or criminal charge is not conclusive evidence of a violation unless
there has been a conviction.
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(e) A hearing must occur prior to any deactivation or other sanction being applied, except
that a TNC may temporarily deactivate a driver for a major infraction that endangers public
safety. In such instances, if the violation is not substantiated, the TNC must immediately
reinstate the driver. If no hearing occurs within the required time period, and no continuance
is agreed to, the alleged claim of a violation must be dismissed and cannot form the basis
of any further deactivation or other sanction.
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(f) If the TNC deactivates a driver, gives a suspension of more than ten days, or if multiple
deactivations exceeding 15 days to a driver occur in a two-year period, the driver may appeal
to the Office of Administrative Hearings (OAH) using the contested case procedure under
chapter 14. The OAH may order that the deactivation be stayed until the hearing. This
provision does not affect layoffs for economic reasons that are not targeted at a particular
driver or drivers.
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(g) Any driver who has been deactivated by a TNC since January 1, 2019, has the right
to a hearing, consistent with the procedures provided in this section, to determine if there
was a valid basis for the deactivation. If a valid basis is not established consistent with this
section, the driver must be reinstated. A driver who has previously been deactivated may
reapply for driver status and the application must be reviewed consistent with this chapter.
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new text begin (h) By August 1, 2023, a TNC must provide notice of a right