Minnesota Governor Tim Walz vetoed a bill that mandated higher wages for rideshare drivers. Instead of signing the bill, Gov. Walz signed an executive order to create a committee for further study.
"I think these workers, these drivers in the gig economy - we're looking at a brand new model of how things are done. They're independent contractors and I think there's no doubt about it, there's got to be some protections,” Walz told WCCO.
“There's gotta be minimum wage, there's got to be protections on how they get deactivated. So I'm in agreement with them. I don't believe the vehicle that passed the legislature at the very end was the vehicle to do that.”
This marks the first time Governor Walz vetoed a bill. His actions came after Uber (NYSE:UBER) threatened to stop serving most of Minnesota and increase prices in the wider area.
"You take [Uber’s threat] into consideration, certainly. I don't necessarily view that they're evil in this but I do believe there needs to be more transparency in how this works. There's concerns coming from the disability community, some of the victims and domestic violence folks who use Uber to get out of these tough situations are simply not comfortable with where this is at," Walz said.
The bill requires gig drivers to receive at least $1.45 per mile and $0.34 per minute for rides in the seven-county Twin Cities metro area, and $1.25 per mile for rides elsewhere in the state.