HF 2369

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/01/2023 02:14pm

A bill for an act
relating to labor; establishing protections for transportation network company
drivers; providing a civil action; 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.
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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" means any online-enabled application, software, website, or other
system offered or utilized by a transportation network company that enables the
prearrangement of rides by transportation network company drivers.
new text end

new text begin (d) "Prearranged ride" or "ride" means the provision of transportation by a TNC driver
to a rider, beginning when the driver accepts a request to transport the person through a
digital network controlled by a transportation network company, continuing while the driver
transports the rider, and ending when the last requesting rider departs the vehicle.
new text end

new text begin (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 to TNC drivers who provide prearranged rides. A
TNC does not include taxicabs, limousines, for-hire vehicles, or a private passenger vehicle
driven by a volunteer driver, nor any entity that does not transport people.
new text end

new text begin (f) "Transportation network driver" or "driver" means an individual who receives
connections to potential riders or related services from a TNC in exchange for payment.
new text end

Sec. 2.

new text begin [181C.02] OBLIGATIONS AND DUTIES INSURANCE REQUIREMENTS.
new text end

new text begin (a) A TNC must maintain insurance on a driver's behalf that:
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new text begin (1) meets the requirements set forth in section 65B.472; and
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new text begin (2) covers injuries to TNC drivers of at least three months for injuries incurred pursuant
to paragraph (c) that are not already fully covered by auto insurance, and occur while the
driver is engaged in activities under paragraph (b).
new text end

new text begin (b) Insurance policies required under paragraph (a), clause (2), must cover injuries that
occur:
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new text begin (1) while the driver is logged into the network and available to receive transportation
requests; or
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new text begin (2) while the driver is engaged in a prearranged ride or activities attendant to, or as a
result of, the ride.
new text end

new text begin (c) Policies issued under paragraph (a), clause (2), must cover a driver's injuries that
present clear physical manifestations within ten days of a qualifying incident, and any
exacerbations or reoccurrence of the original injuries. Notwithstanding anything to the
contrary in this section, the limits of the policy per driver, per qualifying incident, must be
at least:
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new text begin (1) $1,000,000 for medical costs and expenses;
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new text begin (2) $500,000 for disability; and
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new text begin (3) 75 percent of lost wages, as established by the driver's average wages for the preceding
three months prior to the qualifying incident.
new text end

new text begin (d) A driver shall not be responsible for any costs of the insurance policy required under
paragraph (a).
new text end

new text begin (e) All insurance policies under this section must name the driver as an insured and must
be issued by a company or companies licensed by the Department of Commerce.
new text end

new text begin (f) A driver may appeal a claim relating to an insurance policy under this section.
new text end

Sec. 3.

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 basis and may not
be combined.
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new text begin (b) Minimum compensation paid by a TNC shall be as follows:
new text end

new text begin (1) at least $1.85 per mile and $0.25 per minute to all drivers, subject to paragraph (e),
for the time transporting a passenger, unless surge or other enhanced billing is in effect, in
which case the driver shall also be paid 80 percent of any additional fee or fare charged to
the rider on top of their regular mile and minute fees paid on a per-trip basis;
new text end

new text begin (2) a $6.00 cancellation fee when a cancellation occurs after the driver has already
departed to pick up the rider;
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new text begin (3) a $1.25 per mile and $0.10 per minute fee while driving empty to pick up a rider if
it is more than five miles. The fee reverts to normal after the pickup; and
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new text begin (4) a minimum fee of $6.00 for any transport 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 must provide to the applicable driver all tips that a passenger provides to the
driver on the driver's next payment.
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new text begin (e) Beginning July 1, 2024, and each July 1 thereafter, the fares and fees provided in
paragraph (b), clauses (1) to (4), are subject to an automatic annual adjustment equal to the
cost-of-living percentage published by the United States Department of Labor.
new text end

Sec. 4.

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

new text begin (a) A TNC must provide the driver with a written account of the basis for any proposed
deactivation or other sanction with sufficient detail that allows the driver to be able to
respond, including the alleged violation, when and where it occurred, and what rule was
violated.
new text end

new text begin (b) Deactivation for more than three days may only be as a consequence of a major
infraction that occurs while driving. The circumstances constituting a major infraction must
be clearly stated in the rules and are limited to the following, except as provided in paragraph
(c):
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new text begin (1) driving while impaired;
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new text begin (2) reckless or careless driving;
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new text begin (3) unprovoked assault;
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new text begin (4) theft;
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new text begin (5) sexual, racial, or other illegal harassment initiated by a driver; and
new text end

new text begin (6) any felony committed by a driver while driving.
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new text begin (c) Infractions that are not a major infraction cannot be combined to cause a deactivation
of more than three days unless the driver exhibits 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.
new text end

new text begin (d) 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 any 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.
new text end

new text begin (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.
new text end

new text begin (f) If the TNC deactivates a driver, or 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.
new text end

new text begin (g) This provision does not affect layoffs for economic reasons that are not targeted at
a particular driver or drivers.
new text end

new text begin (h) 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
is 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.
new text end

new text begin (i) By August 1, 2023, a TNC must provide notice of a right to a hearing to all drivers
deactivated since January 1, 2019, by contacting the drivers through the following means:
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new text begin (1) emailing notice to the last known email address;
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new text begin (2) texting to the last known cell phone number;
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new text begin (3) providing a written notice to the last known home address; and
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new text begin (4) calling the last known phone number of the deactivated driver.
new text end

new text begin (j) A deactivated driver notified under paragraph (i) has 90 days to request a hearing. If
a driver requests a hearing, the procedures provided in this section apply to that process.
new text end

Sec. 5.

new text begin [181C.05] RETALIATION PROHIBITED.
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new text begin A TNC may not retaliate against or discipline a driver for making a complaint, pursuing
enforcement of the provisions of this chapter, joining with other drivers to discuss or address
concerns, or otherwise engaging in public discourse or expressing opinions regarding their
relationship with a TNC.
new text end

Sec. 6.

new text begin [181C.06] EQUAL ACCESS TO TRANSPORT.
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new text begin A TNC may not use assignment of rides to favor or disfavor any driver for any reason.
The assignments must be on a nonpreferential basis. A TNC must not withhold or change
assignments to a driver because a driver refused potential dispatches. All dispatches must
be made on a driver-neutral basis. A TNC is prohibited from promising preferential treatment
in rider assignments if a driver agrees to refrain from joining an organization of drivers or
for any other reason.
new text end

Sec. 7.

new text begin [181C.07] DISCRIMINATION PROHIBITED.
new text end

new text begin A TNC may not discriminate against any of its drivers, 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 reasonable
accommodations to people with disabilities, for religious reasons, due to pregnancy, or to
remedy previous discriminatory behavior.
new text end

Sec. 8.

new text begin [181C.08] CIVIL ACTION.
new text end

new text begin (a) 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, conciliation
court, or any other court of competent jurisdiction.
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new text begin (b) A prevailing plaintiff is entitled to lost past and future wages and compensatory,
actual, comprehensive, emotional distress, and any other damages the plaintiff suffered as
a proximate result of a TNC's breach of the duties and requirements under this chapter.
new text end

new text begin (c) If a TNC fails to provide insurance, a prevailing plaintiff is entitled to the benefit
they would have received under the applicable insurance policy if it had been in effect or,
at the prevailing plaintiff's discretion, what the cost of that insurance would have been.
new text end

new text begin (d) Injunctive relief may also be sought and granted.
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new text begin (e) A prevailing plaintiff is entitled to reasonable attorney fees, costs, and expenses.
new text end

new text begin (f) A $1,000 penalty for each violation may be assessed against the TNC and made
payable to the injured party.
new text end

new text begin (g) The statute of limitations for an action under this section is three years from the date
of discovery of the violation affecting the complaining party.
new text end

Sec. 9.

new text begin [181C.09] 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. 10.

new text begin [181C.10] 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 the number of miles and likely travel time from the driver's current location
to the pickup. The TNC must separately indicate the length and likely travel time of the
trip.
new text end

new text begin (b) Within 24 hours of each trip completion, the TNC must transmit an electronic receipt
to the driver containing the following information for each unique trip or portion of a unique
trip:
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new text begin (1) the date, location, total distance traveled, and time spent from acceptance of the
assignment to its completion;
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new text begin (2) the time taken and total distance traveled from pickup to drop-off of the rider;
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new text begin (3) an itemization of the total fare or fee paid by the passenger;
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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
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new text begin (5) any other information necessary to implement this chapter.
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new text begin (c) Each driver must be provided with a detailed and itemized explanation communicated
either in writing or electronically of how the driver's compensation is calculated. The
communication must specify:
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new text begin (1) all factors that impact a driver's compensation or reimbursement; and
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new text begin (2) on average, the percentage of the total collected fees and costs incurred by the TNC
that are allocated to the drivers.
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new text begin (d) Any changes in the criteria, formula, or method of calculating the total compensation
to drivers must be provided to drivers in writing at least 30 days prior to taking effect.
new text end

Sec. 11.

new text begin [181C.11] COLLECTIVE BARGAINING AGREEMENTS; EMPLOYMENT
STATUS.
new text end

new text begin Nothing in this chapter prohibits collective bargaining or is a basis to conclude whether
a driver is an employee or independent contractor.
new text end

Sec. 12.

new text begin [181C.12] 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. 13.

new text begin [181C.13] 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