SF 2319

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/11/2023 05:03pm

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:

Section 1.

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

new text begin (a) For the purposes of this chapter, the following terms 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" 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, a private passenger vehicle
driven by a volunteer driver, nor an 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 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 those injuries to drivers set forth in paragraph (c), who have been drivers for
at least three months, for injuries that are not already fully covered by auto insurance and
occur while the driver is engaged in activities in paragraph (b).
new text end

new text begin (b) Insurance policies required pursuant to paragraph (a), clause (2), must cover injuries
that occurred:
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new text begin (1) while the driver was logged into the network and was available to receive
transportation requests; or
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new text begin (2) while the driver was 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 pursuant to paragraph (a), clause (2), must cover a driver's injuries
that presented clear physical manifestations within ten days of the qualifying incident. The
covered injuries must include any exacerbations or reoccurrence of the original injuries.
Notwithstanding anything to the contrary in this section, the limits of the policy, per person,
per qualifying incident, must be at least:
new text end

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 is not 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 to the
Office of Administrative Hearings using the contested case procedure under chapter 14.
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 $1.95 per mile and 59 cents per minute to all drivers for the time transporting
a passenger, 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 on top of their
regular mile and minute fees paid on a per-trip basis;
new text end

new text begin (2) a $10 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) $1.25 per mile and 20 cents per minute if a driver must drive more than five miles
to pick up a person or for the next pickup while a driver is traveling empty to pick up the
passenger. Upon pickup, compensation shall revert to the compensation under clause (1);
and
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new text begin (4) a minimum fee of $6.50 for any transport of a rider to a driver.
new text end

new text begin (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.
new text end

new text begin (d) A TNC must provide to the applicable driver all tips that a passenger provides within
one week following the ride.
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new text begin (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.
new text end

Sec. 4.

new text begin [181C.04] REIMBURSEMENT OF COSTS.
new text end

new text begin (a) A TNC shall pay reimbursement of costs as follows:
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new text begin (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 riders for all
assigned trips by the TNC;
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new text begin (2) 31 cents per mile for wear and tear on the vehicle used to transport riders 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;
new text end

new text begin (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
new text end

new text begin (4) the purchase of any vehicle equipment recommended or required by the TNC.
new text end

new text begin (b) A TNC may not receive any compensation from a car rental company or other product
provided to a driver.
new text end

Sec. 5.

new text begin [181C.05] 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. 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.
new text end

new text begin (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.
new text end

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 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.
new text end

new text begin (d) A TNC must provide the driver 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.
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, 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.
new text end

new text begin (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.
new text end

new text begin (h) 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 Notified deactivated drivers will have 90 days to request a hearing. If a driver requests a
hearing, the procedures contained in this section apply to that process.
new text end

Sec. 6.

new text begin [181C.06] RETALIATION PROHIBITED.
new text end

new text begin A TNC may not retaliate against or discipline a driver for making a complaint, pursuing
enforcement of the terms 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. 7.

new text begin [181C.07] EQUAL ACCESS TO TRANSPORT.
new text end

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. 8.

new text begin [181C.08] 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, disabilities,
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. 9.

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

new text begin (b) A prevailing plaintiff is entitled to three times the damages suffered. This includes
but is not limited to damages for failure to provide the required insurance, which shall be
at least equal to the cost of that insurance, plus any benefits that were not obtained as a
result of the insurance not being in force; any income lost or expenses not paid; damages
for emotional distress; and any other harm that resulted directly or indirectly from the failure
to comply with this chapter. Injunctive relief may also be sought and granted. A prevailing
plaintiff is entitled to reasonable attorney fees, costs, and expenses.
new text end

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

new text begin (d) The statute of limitations on any such complaint is three years from the date of
discovery of the last instance of the violation affecting the complaining party.
new text end

Sec. 10.

new text begin [181C.10] 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. The commissioner of
labor and industry may initiate a revocation or limitation of license proceeding with a local
unit of government providing TNC licenses based upon a failure to comply with this chapter.
new text end

Sec. 11.

new text begin [181C.11] 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 shall 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) On a weekly basis, the TNC shall provide a written notice to each driver containing
the information required in paragraph (b), in a cumulative format for the week.
new text end

new text begin (d) 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 (e) 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. 12.

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

new text begin [181C.13] 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. 14.

new text begin [181C.14] RELATIONSHIP OF THE PARTIES.
new text end

new text begin Notwithstanding any other provision in 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