HF 2369

3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/09/2024 11:51am

A bill for an act
relating to labor; establishing protections for transportation network company
drivers; providing a civil action; providing criminal penalties; amending Minnesota
Statutes 2022, section 609.2231, subdivision 11; proposing coding for new law as
Minnesota Statutes, chapter 181C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [181C.01] DEFINITIONS.
new text end

new text begin (a) For the purposes of this chapter, the terms defined in this section have the meanings
given.
new text end

new text begin (b) "Deactivation" means the suspension or termination of a driver's ability to receive
connections to potential riders from a transportation network company.
new text end

new text begin (c) "Digital network" has the meaning given in section 65B.472, subdivision 1.
new text end

new text begin (d) "Personal vehicle" has the meaning given in section 65B.472, subdivision 1.
new text end

new text begin (e) "Ride" means the provision of transportation by a driver to a rider, beginning when
a driver accepts a ride requested by a rider through a digital network controlled by a
transportation network company, continuing while the driver transports a requesting rider,
and ending when the last requesting rider departs from the personal vehicle. The term does
not include transportation provided using a taxicab, limousine, or other for-hire vehicle.
new text end

new text begin (f) "Seven-county metropolitan area" means the following counties: Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

new text begin (g) "Transportation network company" or "TNC" has the meaning given in section
65B.472, subdivision 1. The term does not include taxicabs, limousines, for-hire vehicles,
or a private rider vehicle driven by a volunteer driver, as defined in section 65B.472,
subdivision 1.
new text end

new text begin (h) "Transportation network driver" or "driver" has the meaning given in section 65B.472,
subdivision 1.
new text end

new text begin (i) "Trip" means any transportation by a driver for a rider through a digital network
controlled by a transportation network company.
new text end

Sec. 2.

new text begin [181C.03] MINIMUM COMPENSATION.
new text end

new text begin (a) All fees provided in this section must be calculated on a per-trip or biweekly basis
and may not be combined.
new text end

new text begin (b) Minimum compensation paid by a TNC to a driver shall be as follows:
new text end

new text begin (1) for all trips that start in the seven-county metropolitan area, at least $1.45 per mile
and $0.34 per minute, subject to paragraph (f), for the time transporting a rider; or
new text end

new text begin (2) for all trips that start outside of the seven-county metropolitan area, at least $1.25
per mile and $0.34 per minute, subject to paragraph (f), for the time transporting a rider;
and
new text end

new text begin (3) if a cancellation occurs after the driver has already departed to pick up a rider the
TNC must provide 80 percent of the cancellation fee to the driver;
new text end

new text begin (4) a $1.25 per mile and $0.10 per minute fee if the TNC charges a fee for a long pickup.
The fee reverts to normal after the pickup; and
new text end

new text begin (5) a minimum fee of $5.00 for any transportation of a rider by a driver.
new text end

new text begin (c) A TNC that uses its software or collection technology to collect fees or fares must
pay a driver the fees or fares earned by the driver, regardless of whether the fees or fares
are actually collected.
new text end

new text begin (d) A TNC may pay a driver the compensation required under this section over a
reasonable pay period not to exceed 14 calendar days.
new text end

new text begin (e) A TNC must provide a driver all tips that a rider provides to the applicable driver on
the driver's next payment.
new text end

new text begin (f) Beginning July 1, 2024, and each July 1 thereafter, the minimum compensation
amounts under paragraph (b), clauses (1) to (4), must be adjusted annually by the percentage
increase, if any, in the Consumer Price Index for all urban consumers published by the
United States Department of Labor.
new text end

Sec. 3.

new text begin [181C.04] DEACTIVATION.
new text end

new text begin (a) A TNC must have clear written rules stating the circumstances under which a driver
may be deactivated or sanctioned, either permanently or temporarily, and stating fair,
objective, and reasonable procedures for a driver to request a reconsideration of a
deactivation. 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. The rules must clearly list the
circumstances that constitute minor infractions and major infractions, and indicate those
infractions that subject a driver to deactivation or other sanction and the corresponding
number of days or range of days of deactivation. A TNC's rules must provide that a driver
must be subject to permanent deactivation if the driver is convicted of or receives a stay of
adjudication for felony-level harassment or stalking under section 609.749, subdivision 3,
4, or 5. A TNC's rules must provide that a driver must be subject to permanent deactivation
if the driver is convicted of or receives a stay of adjudication for murder under section
609.185, 609.19, or 609.195. A TNC's rules must provide that a driver must be subject to
permanent deactivation if the driver is convicted of or receives a stay of adjudication for
violation of predatory offender registration requirements under section 243.166, subdivision
5. A TNC's rules must provide that a driver must be subject to permanent deactivation if
the driver is convicted of or receives a stay of adjudication for violating a harassment
restraining order under section 609.748. A TNC's rules must provide that a driver must be
subject to permanent deactivation if the driver is convicted of or receives a stay of
adjudication for possession of pornographic work involving minors under section 617.247.
A TNC's rules must provide that a driver must be subject to permanent deactivation if the
driver is convicted of or receives a stay of adjudication for criminal sexual conduct under
section 609.342, 609.343, 609.344, 609.345, or 609.3451, or for criminal sexual predatory
conduct under section 609.3453. A TNC's rules must provide that a driver must be subject
to permanent deactivation if the driver is convicted of or receives a stay of adjudication for
carjacking under section 609.247. A TNC's rules must provide that a driver must be subject
to permanent deactivation if the driver is convicted of or receives a stay of adjudication for
driving while impaired under section 169A.20. A TNC's rules must provide that a driver
must be subject to permanent deactivation if the driver is convicted of or receives a stay of
adjudication for kidnapping under section 609.25.
new text end

new text begin (b) A TNC must provide the driver with a written basis for any proposed deactivation
or other sanction, including the alleged infraction and the rule or rules the TNC alleges have
been violated. The driver has a right to a meeting with the TNC to reconsider the deactivation.
The deactivated driver must have an opportunity to present their position and any other
relevant information or witnesses regarding the alleged rule violation. The TNC must
consider any information presented by the driver. For a deactivation to be upheld, there
must be evidence under the totality of the circumstances to find that it is more likely than
not that a rule violation subjecting the driver to deactivation has occurred. A traffic ticket
or other traffic or criminal charge alone is not conclusive of a rule violation unless there
has been a conviction.
new text end

new text begin (c) Except as provided in paragraphs (f) to (h), a driver must request a deactivation
reconsideration meeting within 15 calendar days of receiving notice of a deactivation. A
deactivation reconsideration meeting must occur within 15 calendar days of receipt of a
driver's request for a deactivation reconsideration meeting. If a deactivation reconsideration
meeting does not occur within the required time period, and no continuance is agreed to,
the alleged violation must be dismissed and cannot form the basis of any further deactivation
or other sanction, unless the driver is later found guilty of a crime that endangers public
safety or of a violation that constitutes a major infraction.
new text end

new text begin (d) If a rule violation is not substantiated at the deactivation reconsideration meeting,
the TNC must immediately reinstate the driver's account.
new text end

new text begin (e) This section does not affect deactivations for economic reasons that are not targeted
at a particular driver or drivers.
new text end

new text begin (f) Any driver who has been deactivated by a TNC from January 1, 2021, until the day
of enactment, has the right to reapply for driver status and request a deactivation
reconsideration meeting, consistent with the procedures provided in this section, to determine
if there is a valid basis to uphold the deactivation, and whether the driver should be reinstated.
new text end

new text begin (g) By August 1, 2023, a TNC must provide notice of a right to a deactivation
reconsideration meeting to all drivers deactivated since January 1, 2021, by contacting the
drivers through the following means, in no particular order, until actual contact is made:
new text end

new text begin (1) emailing notice to the last known email address;
new text end

new text begin (2) texting notice to the last known cell phone number;
new text end

new text begin (3) mailing written notice to the last known home address; and
new text end

new text begin (4) calling the last known phone number of the deactivated driver.
new text end

new text begin (h) A deactivated driver notified under paragraph (g) has 90 days to request a deactivation
reconsideration meeting. If a driver requests a deactivation reconsideration meeting, the
procedures provided in this section apply.
new text end

Sec. 4.

new text begin [181C.05] DISCRIMINATION AND RETALIATION PROHIBITED.
new text end

new text begin (a) A TNC may not discriminate against any of its drivers, qualified applicants to become
drivers, riders, or potential riders due to race, national origin, color, religion, age, gender,
disability, sexual orientation, or gender identity. Nothing in this language prohibits providing
a reasonable accommodation to a person with a disability, for religious reasons, due to
pregnancy, or to remedy previous discriminatory behavior.
new text end

new text begin (b) A TNC may not retaliate against or discipline a driver for raising a complaint or
pursuing enforcement of the provisions of this chapter.
new text end

Sec. 5.

new text begin [181C.06] CIVIL ACTION.
new text end

new text begin A driver or a driver's beneficiaries may bring a civil action for damages for
noncompliance or a violation of this chapter against a TNC in district court. An action
brought under this section shall be commenced within two years.
new text end

Sec. 6.

new text begin [181C.07] REVOCATION OF LICENSE.
new text end

new text begin Failure to comply with the requirements of this chapter subjects a TNC to revocation of
any license and right to operate issued by a local unit of government.
new text end

Sec. 7.

new text begin [181C.08] TRANSPARENCY.
new text end

new text begin (a) When a TNC alerts a driver of a possible assignment to transport a rider, the TNC
must indicate:
new text end

new text begin (1) the number of miles and likely travel time from the driver's current location to the
pickup;
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new text begin (2) the length and likely travel time of the trip; and
new text end

new text begin (3) the minimum fare compensation for the trip.
new text end

new text begin (b) Within 24 hours of each trip completion, the TNC must transmit a detailed electronic
receipt to the driver containing the following information for each unique trip or portion of
a unique trip:
new text end

new text begin (1) the date, location, total distance traveled, and time spent from acceptance of the
assignment to its completion;
new text end

new text begin (2) the time taken and total distance traveled from pickup to drop-off of the rider;
new text end

new text begin (3) an itemization of the total fare or fee paid by the rider;
new text end

new text begin (4) the total compensation to the driver specifying the rate or rates of pay, the rate per
minute, rate per mile, any applicable price multiplier or variable pricing policy in effect,
tip compensation, and a specifically itemized list of all costs and reimbursements to, or
charged to, the driver; and
new text end

new text begin (5) any other information necessary to implement this chapter.
new text end

new text begin (c) To the extent the information has not been provided under paragraph (b), the TNC
must also provide the driver with a detailed and itemized explanation of how the driver's
total compensation is calculated in writing or electronically, including on average, the
percentage of the total collected fees and costs incurred by the TNC that are allocated to
the driver.
new text end

new text begin (d) The TNC must provide notice to drivers of any changes to the drivers' total
compensation in writing or electronically prior to the date the changes take effect.
new text end

Sec. 8.

new text begin [181C.09] COLLECTIVE BARGAINING AGREEMENTS; EMPLOYMENT
STATUS.
new text end

new text begin Notwithstanding any law to the contrary, nothing in this chapter prohibits collective
bargaining or shall be used as a basis to conclude whether a driver is an employee or
independent contractor.
new text end

Sec. 9.

new text begin [181C.10] DRIVER CONTRACT REQUIREMENTS.
new text end

new text begin A copy of this chapter must be attached to every driver contract for drivers in this state.
The rights and remedies established in this chapter are not required to be pursued through
arbitration and shall be at the election of the driver. 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, rather than
through arbitration. For cases that go to arbitration, the rights and damages that drivers are
entitled to in an arbitration proceeding shall be as provided in this chapter.
new text end

Sec. 10.

new text begin [181C.11] RELATIONSHIP OF THE PARTIES.
new text end

new text begin Notwithstanding any other provision of law regarding independent contractors or
employee status, nothing in this chapter affects whether a TNC is an employer of a driver,
nor whether a TNC driver is an employee of the TNC.
new text end

Sec. 11.

Minnesota Statutes 2022, section 609.2231, subdivision 11, is amended to read:

Subd. 11.

Transit operators.

(a) A person is guilty of a gross misdemeanor if (1) the
person assaults a transit operator, or intentionally throws or otherwise transfers bodily fluids
onto a transit operator; and (2) the transit operator is acting in the course of the operator's
duties and is operating a transit vehicle, aboard a transit vehicle, or otherwise responsible
for a transit vehicle. A person convicted under this paragraph may be sentenced to
imprisonment for not more than one year or to payment of a fine of not more than $3,000,
or both.

(b) For the purposes of this subdivision, "transit operator" means a driver or operator of
a transit vehicle that is used to provide any of the following services:

(1) public transit, as defined in section 174.22, subdivision 7;

(2) light rail transit service;

(3) special transportation service under section 473.386, whether provided by the
Metropolitan Council or by other providers under contract with the council; deleted text begin or
deleted text end

(4) commuter rail service new text begin ; or
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new text begin (5) transportation network company drivers new text end .