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DirectionsProtections for transportation network company (TNC) drivers
Minimum compensation
Pay transparency
Driver deactivation
This overview of Minnesota Statutes sections 65B.472, 181C.01-.10 is informational only. It is not a source of law and is not provided as legal advice.
A TNC is a company in Minnesota that uses an app to connect passengers to drivers for prearranged rides. A TNC driver is someone who uses their own vehicle to provide a prearranged ride to a passenger through the app.
The TNC law covers drivers providing passenger service only and does not apply to food delivery drivers or volunteer drivers who transport people or goods.
TNC law implementation timeline
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Dec. 1, 2024: Minimum pay rate, pay rate notification to drivers, deactivation process and driver advocacy organization requirements began.
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Jan. 1, 2025: New insurance requirements for TNCs operating in Minnesota start.
Minimum pay for drivers
What is the minimum compensation/pay that a TNC must pay to a driver?
Starting Dec. 1, 2024, TNCs must pay drivers at least $1.28 per mile and at least 31 cents per minute while a driver has a passenger in their vehicle. For any trip with a passenger, a TNC driver must be paid a minimum of $5.
Are tips included in the calculation of the minimum payment rate?
Tips are not included in the calculation of the minimum payment rate. All tips or gratuities belong entirely to the driver and are in addition to the minimum-pay rate.
What is the minimum compensation or pay that a TNC must pay to a driver using a wheelchair-accessible vehicle?
If a driver is driving a wheelchair-accessible vehicle, TNCs must pay at least $2.19 per mile and 31 cents per minute when the driver has a passenger in the vehicle, regardless of whether a wheelchair securement device is used or not.
What happens if a TNC or a rider cancels a trip request after a driver has already started driving to pick up the rider?
A TNC driver is entitled to 80% of the cancellation fee paid by the rider if the TNC or rider cancels a trip request when the driver is already on their way to pick up the rider.
How will TNC drivers know that they received the minimum pay rate for their trips?
For each pay period, the TNC will compare a driver’s earnings, excluding tips, to the minimum pay rate requirement, and if the earnings are less than the required minimum pay rate, the TNC must include an additional supplemental payment to the driver in the next pay period.
Drivers will see their total trip miles with a passenger and total trip time with a passenger on their trip receipts and weekly summaries.
What do I do if I have a problem with the minimum payment I am supposed to receive?
Contact the Department of Labor and Industry’s (DLI’s) Labor Standards Division at 651-284-5075 or dli.laborstandards@state.mn.us.
Notifications to drivers and pay transparency
What notice does a TNC have to give a driver regarding the minimum pay rate?
A TNC must provide its drivers with a written notice when an account is activated and once a year while a driver maintains a TNC account. The notice must be written in plain language and made available in English, Amharic, Arabic, Hmong, Oromo, Somali and Spanish.
The minimum pay rate notice to drivers must include:
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the right to legally required minimum compensation under Minnesota law section 181C.03 (effective Dec. 1, 2024);
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when and how often a driver will be paid;
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the rights and remedies available if a TNC fails to comply with legal obligations related to minimum compensation; and
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the right to elect coverage of paid leave benefits, as provided under Minnesota law chapter 268B (effective Jan. 1, 2026).
A TNC must tell a driver in writing or electronically about any changes to the driver’s compensation policy at least 48 hours before the changes take effect.
What does a TNC need to provide in the assignment notice or offer card about a ride?
When a TNC offers a possible ride assignment, they must give the driver enough time to review the estimated:
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travel time and distance from the driver’s current location to the pick-up location;
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travel time and distance for the trip transporting the rider; and
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total compensation to the driver before any tips.
What does a TNC need to provide on a daily trip receipt?
After each trip, the TNC must give the driver an electronic receipt within 24 hours. This receipt will include:
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the date and the pick-up and drop-off locations;
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time and total mileage from pick-up to drop-off;
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time and total mileage from where the driver accepted the ride until completed;
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total fare paid by the rider;
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an itemized list of tolls, fees, or other charges the driver may need to cover; and
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the driver’s compensation, including:
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any applicable rates and price multipliers; and
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any tip paid by the rider.
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What does a TNC need to provide on a weekly summary?
Every week, a TNC must give its drivers a written or electronic summary for the previous week. The summary must include:
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total amount of time the driver was logged into the TNC app;
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total amount of time and mileage when the driver was on the way to pick up a rider and transporting a rider;
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total amount the riders paid, including fares and fees; and
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total payment to the driver, including tips.
How long must a TNC maintain records of a driver’s rides?
A TNC must keep records of a driver's rides for at least three years. This includes daily trip receipts and weekly summaries.
What do I do if I have a problem with the notifications about my payments or my trip receipts?
Contact Labor Standards at 651-284-5075 or dli.laborstandards@state.mn.us.
Retaliation and discrimination prohibited
A TNC must not retaliate against or discipline a driver for making a complaint or pursing enactment or enforcement of these laws.
A TNC must not give less favorable or more favorable rides to a driver for making public or private comments about working conditions or compensation at a TNC.
A TNC must not discriminate against a driver or a qualified driver applicant due to race, national origin, color, creed, religion, sex, disability, sexual orientation, marital status or gender identity as provided under section 363A.11.
Employment status and collective bargaining
Nothing in the law determines or defines a driver as an employee of a TNC.
Collective bargaining
TNC drivers are not prohibited from collective bargaining.
Driver resource centers and deactivations
What is a driver resource center?
A driver resource center is a local organization selected by a TNC to provide free assistance to drivers. The driver resource center will help drivers with deactivation appeals and education and outreach about drivers’ rights and legal remedies available. DLI will work closely with staff at the driver resource centers to ensure that drivers know their legal rights and how to make a complaint if necessary. When DLI receives notice about which local organizations are selected, that information will be shared here.
What does “deactivation” mean for a TNC driver?
"Deactivation" is when a TNC blocks a driver's access to the app for more than 24 hours or more than 72 hours when the TNC must investigate a claim against a driver. Deactivation doesn’t include a driver's loss of access to the app because of the driver’s failure to follow the required licensing, insurance or regulatory requirements.
What does a TNC need to provide in the deactivation policy?
A TNC must have a deactivation policy that describes the process for deactivation of a driver. The policy must be available online and through the TNC app. The policy must be translated into Amharic, Arabic, Hmong, Oromo, Somali and Spanish. The policy must include:
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reasons why a driver could be deactivated and the approximate length of time they could be deactivated;
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how the TNC will notify the driver of a deactivation and the reason for the deactivation;
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steps for a driver to take to appeal the deactivation and the criteria for reconsidering a deactivation decision; and
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definition of “serious misconduct.”
If a TNC deactivates a driver, what will the TNC provide to the driver?
If a TNC deactivates a driver, the TNC must provide a written notice at the time of the deactivation. The notice must include:
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the reason for the deactivation;
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the expected amount of time of the deactivation;
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the day that the deactivation will start;
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the explanation of whether the deactivation can be reversed and the steps to take to reverse the deactivation;
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instructions for how to request reconsideration of the deactivation;
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information on the deactivation appeal process and the driver’s right to appeal; and
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notice that the driver has the right to assistance in the appeals process, and the telephone number and website information for the driver resource center.
If the deactivation was for serious misconduct, the TNC must share the deactivation notice within three days.
Will a TNC provide a warning to a driver if their behavior could result in a deactivation?
If the driver’s conduct does not include serious misconduct, the TNC must provide a warning to a driver about their conduct. But, if the driver’s conduct is defined in the deactivation policy as serious misconduct, the TNC does not have to provide a warning before deactivating the driver.
Can the driver resource center help a driver to appeal the deactivation process?
Yes. Each TNC must work with a local organization to provide free assistance to drivers with the appeals process. When DLI receives notice about which local organizations are selected, that information will be shared here.
How much time will a deactivation appeal take?
A TNC driver will have at least 30 days after the deactivation to appeal and may receive assistance or legal support to appeal. The driver must be permitted to provide additional information. The TNC must consider the new information presented and respond within 15 days, unless either the driver or the TNC requests an extension. A TNC may hire another company to help them with the appeal.
Are there any exceptions to the deactivation appeals process?
If the TNC deactivates drivers due to a public state of emergency or due to economic conditions, the deactivation appeals process would not apply.
What happens if a driver is deactivated for a purely technical reason and the deactivation was unintentional and through no fault of the driver?
If a driver is deactivated unintentionally or for a purely technical reason, the driver must be provided reasonable payment for the period of time the driver was prohibited from accessing the app, up to a total of 21 days. To determine the amount of reasonable payment the TNC must use the driver’s daily average in earnings from the TNC in the 90 days prior to deactivation.
Arbitration
A TNC must:
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provide a driver with the option to opt out of arbitration; and
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notify drivers that they can opt out of arbitration.
Additional information and resources
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Presentation about TNC minimum compensation and notice to drivers (video): English
Contact us
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651-284-5075.
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If needed, our agency has access to Language Line Services, a free language translation service for limited-English speakers. Contact us and we will get in touch with an interpreter.