SF 2319

3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/01/2024 12:10pm

A bill for an act
relating to labor; establishing protections for transportation network company
drivers; amending Minnesota Statutes 2022, section 65B.472, by adding a
subdivision; proposing coding for new law as Minnesota Statutes, chapter 181C.

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

Section 1.

Minnesota Statutes 2022, section 65B.472, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Occupational accident insurance. new text end

new text begin (a) For purposes of this subdivision, a
transportation network company driver is engaged on a network company's application or
platform starting when the transportation network company driver accepts a rideshare request
to when the transportation network company driver completes that rideshare request.
new text end

new text begin (b) Network companies, within 240 days of the effective date of this act, shall purchase
occupational accident insurance, as described in paragraph (d), for all transportation network
company drivers who are engaged on a network company's platform within the state.
new text end

new text begin (c) The occupational accident insurance policy required under paragraph (b) shall cover
medical expenses and lost earnings resulting from injuries suffered while the transportation
network company driver is engaged on the network company's online-enabled application
or platform. Policies shall at a minimum include an aggregate limit of $1,000,000 per
accident and provide for payment of benefits to a covered individual as follows:
new text end

new text begin (1) coverage for medical expenses incurred, up to at least $250,000;
new text end

new text begin (2) continuous weekly compensation of total disability payments, temporary total
disability payments, and partial disability payments equal to 66 percent of the transportation
network company driver's average weekly earnings, as defined in subdivision 5, paragraph
(a), clause (3), from all network companies as of the date of injury not to exceed the
maximum weekly compensation rate, unless the transportation network company driver's
average weekly earnings are less than the minimum weekly compensation rate, in which
case the weekly compensation amount shall be equal to the transportation network company
driver's average weekly wage; and
new text end

new text begin (3) for the benefit of spouses, children, or other dependents of a transportation network
company driver, accidental death insurance for injuries suffered by a transportation network
company driver while engaged on the network company's online-enabled application or
platform that result in death. Accidental death insurance shall be in an amount equal to 66
percent of the transportation network company driver's average weekly earnings from all
network companies as of the date of injury not to exceed the maximum weekly compensation
rate, unless the transportation network company driver's average weekly earnings are less
than the minimum weekly compensation rate, in which case the weekly compensation
amount shall be equal to the transportation network company driver's average weekly wage,
times 156 weeks.
new text end

new text begin (d) If a transportation network company driver engaged on a network company's
application or platform is injured in an accident covered by occupational accident insurance
maintained by more than one network company, the insurer of the network company against
whom a claim is filed is entitled to contribution for the pro rata share of coverage attributable
to one or more other network companies up to the coverages and limits in paragraph (b).
new text end

new text begin (e) Any benefits provided to a transportation network company driver under this
subdivision shall be considered amounts payable under applicable workers' compensation
law or disability insurance benefit for the purpose of determining amounts payable under
any insurance provided under section 65B.49, subdivision 3a, or under any personal injury
protection coverage, as provided in sections 65B.41 to 65B.71.
new text end

Sec. 2.

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, paragraph
(b).
new text end

new text begin (d) "Prearranged ride" or "ride" has the meaning given in section 65B.472, subdivision
1, paragraph (d).
new text end

new text begin (e) "Transportation network company" or "TNC" has the meaning given in section
65B.472, subdivision 1, paragraph (e), provided that 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, paragraph (h).
new text end

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

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

Sec. 3.

new text begin [181C.02] 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.
new text end

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;
new text end

new text begin (2) when a cancellation occurs after the driver has already departed to pick up the rider,
the TNC must provide 80 percent of the cancellation fee to the driver; and
new text end

new text begin (3) 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.
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.
new text end

new text begin (e) Beginning July 1, 2024, and each July 1 thereafter, the fares and fees provided in
paragraph (b), clauses (1) to (3), 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.03] 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 appeals procedures for the handling of driver appeals under
paragraph (d). These rules and any updates must be available both online and in written
form to 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 and the corresponding number of days or
range of days of deactivation.
new text end

new text begin (b) 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 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 deactivation 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 (c) An appeal under paragraph (d) 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 appeal under paragraph (d) 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 (d) A driver may appeal a deactivation hearing decision under paragraph (b) to the TNC,
if the decision would result in the deactivation of a driver or a suspension of more than ten
days.
new text end

new text begin (e) 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 (f) A driver who has previously been deactivated may reapply for driver status. The
mere fact of a previous deactivation does not disqualify an applicant. The TNC shall notify
an applicant of the reason for the denial of the application and give the applicant an
opportunity to respond to the reason for the denial.
new text end

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

Sec. 5.

new text begin [181C.04] DISCRIMINATION PROHIBITED.
new text end

new text begin 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,
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. 6.

new text begin [181C.05] 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. 7.

new text begin [181C.06] 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. 8.

new text begin [181C.07] 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;
new text end

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 an 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 passenger;
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) 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:
new text end

new text begin (1) all factors that impact a driver's compensation or reimbursement; and
new text end

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.
new text end

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

new text begin (e) 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. 9.

new text begin [181C.08] 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. 10.

new text begin [181C.09] 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. 11.

new text begin [181C.10] 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