Legislation

Omnibus Transportation Act of 2024 (former Minnesota House File No. 5247, 2024)

Country: United States

Jurisdiction: State (State of Minnesota)

Authority: Minnesota State Legislature

Legislation type: Statutory act

Binding: Yes

Source: Visit page

Date of adoption: 2024

Legal Status: In force

Platform(s): (Location-based) Taxi or ride-hailing

Summary

The Omnibus Transportation Act of 2024 establishes employment standards and protections for transportation network company drivers in Minnesota. The Act sets minimum compensation requirements, mandates insurance coverage during active periods, and ensures pay transparency and record keeping. It guarantees the right to collective bargaining and prohibits discrimination. The Act regulates deactivation procedures and provides arbitration rights that preserve the remedies established in the Act.

Additional provisions may be included in the original Omnibus Transportation Act that are not covered in this summary. For complete information, please refer to the full text of the Act.

Thematic areas

Article 17: Transportation network companies. Sec. 7. [181C.06] DISCRIMINATION PROHIBITED.

(a) A TNC must not discriminate against a TNC driver or a qualified applicant to become a driver, due to race, national origin, color, creed, religion, sex, disability, sexual orientation, marital status, or gender identity as provided under section 363A.11. Nothing in this section prohibits providing a reasonable accommodation to a person with a disability, for religious reasons, due to pregnancy, or to remedy previous discriminatory behavior.

(b) A TNC driver injured by a violation of this section is entitled to the remedies under sections 363A.28 to 363A.35.
Article 17: Transportation network companies.

Sec. 9. [181C.08] ARBITRATION; REQUIREMENTS.

(a) A TNC must provide a driver with the option to opt out of arbitration. Upon a driver's written election to pursue remedies through arbitration, the driver must not seek remedies through district court based on the same alleged violation.

(b)The rights and remedies established in this chapter must be the governing law in an arbitration between a driver operating in Minnesota and a TNC. The application of the rights and remedies available under chapter 181C cannot be waived by a driver prior to or at the initiation of an arbitration between a driver and a TNC. To the extent possible, a TNC shall use Minnesota as the venue for arbitration with a Minnesota driver. If an arbitration cannot take place in the state of Minnesota, the driver must be allowed to appear via phone or other electronic means and apply the rights and remedies available under chapter 181C. Arbitrators must be jointly selected by the TNC and the driver using the roster of qualified neutrals provided by the Minnesota supreme court for alternative dispute resolution. Consistent with the rules and guidelines provided by the American Arbitrators Association, if the parties are unable to agree on an arbitrator through the joint selection process, the case manager may administratively appoint the arbitrator or arbitrators.

(c) Contracts that have already been executed must have an addendum provided to each driver that includes a copy of this chapter and notice that a driver may elect to pursue the remedies provided in this chapter.
Article 17: Transportation network companies.

Sec. 4. [181C.03] MINIMUM COMPENSATION.

(a) Minimum compensation of a TNC driver under this paragraph must be adjusted annually as provided under paragraph (f), and must be paid in a per minute, per mile format, as follows: (1) $1.28 per mile and $0.31 per minute for any transportation of a rider by a driver; (2) if applicable, an additional $0.91 per mile for any transportation of a rider by a driver in a vehicle that is subject to the requirements in sections 299A.11 to 299A.17, regardless of whether a wheelchair securement device is used; (3) if a trip request is canceled by a rider or a TNC after the driver has already departed to pick up a rider, 80 percent of any cancellation fee paid by the rider; and (4) at minimum, compensation of $5.00 for any transportation of a rider by a driver.

(b) A TNC must pay a driver the minimum compensation required under this section over a reasonable earnings period not to exceed 14 calendar days. The minimum compensation required under this section guarantees a driver a certain level of compensation in an earnings period that cannot be reduced. Nothing in this section prevents a driver from earning, or a TNC from paying, a higher level of compensation.

(c) Any gratuities received by a driver from a rider or riders are the property of the driver and are not included as part of the minimum compensation required by this section. A TNC must pay the applicable driver all gratuities received by the driver in an earnings period no later than the driver's next scheduled payment.

(d) For each earnings period, a TNC must compare a driver's earnings, excluding gratuities, against the required minimum compensation for that driver during the earnings period. If the driver's earnings, excluding gratuities, in the earnings period are less than the required minimum compensation for that earnings period, the TNC must include an additional sum accounting for the difference in the driver's earnings and the minimum compensation no later than during the next earnings period.

(e) A TNC that uses software or collection technology to collect fees or fares must pay a driver the compensation earned by the driver, regardless of whether the fees or fares are actually collected.

(f) Beginning January 1, 2027, and each January 1 thereafter, the minimum compensation required under paragraph (a) must be adjusted annually by the same process as the statewide minimum wage under section 177.24, subdivision 1.
Article 17: Transportation network companies. Section 1. Minnesota Statutes 2022, section 65B.472, is amended to read:

65B.472 TRANSPORTATION NETWORK FINANCIAL RESPONSIBILITY. Subd. 2. Maintenance of transportation network financial responsibility. (...)

(d) During P2 and P3, a TNC must maintain insurance on behalf of, and at no cost to, the driver that provides reimbursement for all loss suffered through personal injury arising from the driver's work for the TNC that is not otherwise covered by the insurance required under paragraphs (b) and (c). The TNC may purchase the insurance coverage using a portion of the fare or fee paid by the rider or riders. A driver shall not be charged by the TNC or have their compensation lowered because of the insurance. The insurance coverage must be in the amount of not less than $1,000,000 per incident due to personal injury and include the following types of coverage: medical expense benefits, disability and income loss benefits, funeral and burial expenses, replacement services loss benefits, survivors economic loss benefits, and survivors replacement services loss benefits. Insurance coverage under this paragraph includes personal injury sustained while at the drop-off location immediately following the conclusion of a prearranged ride.
Article 17: Transportation network companies.

Sec. 5. [181C.04] DEACTIVATION. Subdivision 1. Deactivation policy; requirements.

(a) A TNC must maintain a written plain-language deactivation policy that provides the policies and procedures for deactivation. The TNC must make the deactivation policy available online, through the TNC's digital platform. Updates or changes to the policy must be provided to drivers at least 48 hours before they go into effect.

(b) The deactivation policy must be provided in English, Amharic, Arabic, Hmong, Oromo, Somali, and Spanish. TNCs operating in Minnesota must consider updating the languages in which they offer the deactivation policy each year.

(c) The deactivation policy must: (1) state that the deactivation policy is enforceable as a term of the TNC's contract with a driver; (2) provide drivers with a reasonable understanding of the circumstances that constitute a violation that may warrant deactivation under the deactivation policy and indicate the consequences known, including the specific number of days or range of days for a deactivation if applicable; (3) describe fair and reasonable procedures for notifying a driver of a deactivation and the reason for the deactivation; (4) describe fair, objective, and reasonable procedures and eligibility criteria for the reconsideration of a deactivation decision and the process by which a driver may request a deactivation appeal with the TNC, consistent with subdivision 5; and (5) be specific enough for a driver to understand what constitutes a violation of the policy and how to avoid violating the policy.

(d) Serious misconduct must be clearly defined in the TNC deactivation policy. Subd. 2. Prohibitions for deactivation. A TNC must not deactivate a driver for: (1) a violation not reasonably understood as part of a TNC's written deactivation policy; (2) a driver's ability to work a minimum number of hours; (3) a driver's acceptance or rejection of a ride, as long as the acceptance or rejection is not for a discriminatory purpose; (4) a driver's good faith statement regarding compensation or working conditions made publicly or privately; or (5) a driver asserting their legal rights under any local, state, or federal law.
Article 17: Transportation network companies.

Sec. 2. [181C.01] DEFINITIONS.

Subd 4: "Driver time periods" are divided into three exclusives segments which have the following meanings: "period 1" or "P1" means the time when a driver is logged into a TNC application, but has not accepted a ride offer; (2) "period 2" or "P2" means the time when a driver is proceeding to pick up a rider after choosing to accept a ride offer; and (3) "period 3" or "P3" means the time when a driver is transporting a rider from a pickup location to a drop-off location. (...)