SF5134

Purpose and scope

This bill would create a new set of laws in Minnesota to give transportation network company (TNC) drivers the right to organize, form or join labor organizations, and bargain collectively with TNCs. It also sets up a system for regulating these rights, including data reporting, rulemaking, and enforcement through state agencies and the court system.

Key concepts and definitions

• Transportation network company (TNC): The company that runs rideshare services (e.g., apps that connect drivers with riders).
• Driver: Person who drives for a covered TNC.
• Covered TNC: A TNC that meets a specific rideshare share threshold and is covered by these new rules.
• Active driver: A driver who, in the most recent two quarters with data, completed at least the median number of rides as determined by the state.
• Exclusive representative: A labor organization certified to bargain on behalf of drivers.
• Bargaining unit: All drivers who work for covered TNCs are included in a single industry-wide unit.
• Company union: A driver organization created or led by a TNC that may influence terms, conditions, or representation of drivers.
• Digital network: The platform or app used to coordinate rides (as defined in existing law).
• Public Employment Relations Board (Board) and Bureau of Mediation Services (Bureau): State bodies that oversee labor relations, mediation, hearings, and enforcement.

Main Provisions

1) Rights of drivers and bargaining - Drivers can organize, form, join, or assist labor organizations and can designate an exclusive representative to bargain for terms and conditions of work. - Drivers (through their exclusive representative) have the right to meet and negotiate with covered TNCs in good faith about grievance procedures and work terms. Negotiation is voluntary; it does not require concessions. - Drivers have the right to concerted activities to improve rights and protections and can refrain from concerted activities if they choose.

2) Coverage and data reporting - The bill requires quarterly reporting of rides and driver data by each TNC to the Bureau, including a ranking of TNCs by rideshare volume. - TNCs are assigned as “covered” if their rides account for 95% of statewide rides in a quarter (with TNCs under common ownership treated as a single TNC). The Bureau publishes which TNCs are covered. - If a TNC fails to report required data, the Board can file an unfair labor practice complaint and seek court relief to compel production. Penalties can be up to $10,000 per day for noncompliance. - Beginning October 1, 2026, covered TNCs must provide an alphabetized list with driver details (names, license numbers, contact info, joining dates, and quarterly ride counts) for drivers who completed at least one ride in the state. - From 2027 onward, the Commissioner will use data from covered TNCs to publish driver distribution and medians (e.g., median rides for drivers with at least five rides in the prior two quarters). TNCs must avoid listing drivers more than once if they drive for multiple covered TNCs.

3) Representation and bargaining process - A single industry-wide bargaining unit includes all active drivers for covered TNCs. - Labor organizations can file to demonstrate support and pursue certification as a bargaining representative. - The process allows for proof of driver authorization and certification, with timelines for determination.

4) Duties of the Commissioner and rulemaking - The Commissioner of the Bureau of Mediation Services is tasked with: providing mediation, helping prepare petitions and notices, adopting rules for administration and hearings, and maintaining a list of qualified arbitrators. - The Bureau collects, interprets, and publishes driver data as described above, including data related to rides and driver activity.

5) Unfair labor practices and enforcement - Unfair labor practices by TNCs include failing to provide requested information, refusing to negotiate in good faith, failing to share required driver data, interfering with drivers’ rights, or deactivating a driver as retaliation for exercising rights. - Unfair labor practices by labor organizations include failing to bargain in good faith, or other acts aimed at restraining or coercing drivers. - The Board has authority to enforce these provisions, hold hearings, issue orders, and require remedies (such as reinstatement, back pay with interest, and other remedies to make parties whole). - Injunctive relief can be sought in district court to prevent ongoing unfair labor practices, with expedited timelines to issue decisions.

6) Notice to drivers - TNCs must send at least one annual text and email notice to drivers informing them of their rights under this chapter and how to file unfair labor practice charges. The Bureau will post this notice on its website.

7) Hearings, decisions, and appeals - Unfair labor practice charges are investigated, with hearings conducted by licensed hearing officers. - Decisions can include cease-and-desist orders, remedies, back pay with interest, and other relief. Final orders can be reviewed by the Board, which can adopt all or part of the recommended decision. - The Board can enforce orders through district courts and can seek injunctive relief if needed.

8) Representation specifics - The bill details procedures for verifying driver support and certification as a bargaining representative, including a rolling basis for proof of support and the process to request certification.

Significance and changes to law

• Establishes a novel, state-regulated framework for driver organizing and bargaining specifically for TNC drivers, separate from traditional labor relations in other industries.
• Creates an industry-wide bargaining unit for all drivers of covered TNCs in Minnesota.
• Introduces a data-driven gatekeeper for coverage (the 95% threshold) and mandates extensive quarterly data reporting by TNCs.
• Expands the role of state agencies (Bureau of Mediation Services and Public Employment Relations Board) in mediation, rulemaking, hearings, and enforcement of driver rights.
• Creates specific penalties and injunctive relief mechanisms to ensure compliance.
• Sets up a multi-year data publication plan, including later driver-level data and driver distribution analytics.

Potential impacts

• For drivers: Stronger collective bargaining rights and formal processes to address pay, hours, and working conditions.
• For TNCs: New compliance requirements, data reporting, and potential implications of being classified as a “covered” TNC with bargaining obligations.
• For the state: A new regulatory pathway to oversee labor relations in the rideshare industry, including penalties and enforcement mechanisms.

Timeline and next steps (summary)

• Data reporting and coverage determinations would begin under the provisions as enacted (with specified deadlines for reporting and penalty triggers).
• By 2026-2027, driver-level data reporting and distribution analyses would become more formal and public-facing in published forms, with ongoing enforcement and hearing processes for unfair labor practices.

Relevant Terms - Transportation network company (TNC) - Driver - Covered TNC - Active driver - Exclusive representative - Bargaining unit (industry-wide) - Company union - Digital network - Bureau of Mediation Services - Public Employment Relations Board (Board) - Unfair labor practice - Mediation and arbitration - Notice to drivers - Injunctive relief - Back pay - District court - Certification - Rideshare volume - 95 percent threshold - Data reporting (driver data, quarterly rides) - Arbitration and hearing process - Remedies and enforcement