Later this week, Augusta lawmakers are set to discuss a bill that would set a minimum rate of pay for rideshare drivers in Maine.
Under the proposed law, which originated as a concept draft, companies like Uber and Lyft would be required to pay drivers a minimum amount per trip based on either duration or length.
On a per-trip basis, drivers would be guaranteed at least $00.34 per minute or $1.17 per mile, whichever is greater, beginning on January 1, 2027. Alternatively, platforms would be allowed to pay drivers a flat fee of $3 per ride.
Starting in 2028, these amounts would be indexed to the cost of living in Maine, similar to how the state currently handles its minimum wage.
Click Here to Read the Full Text of LD 877
During a public hearing held last week, bill sponsor Rep. Eleanor Sato (D-Gorham) explained that the proposal aims to “ensure that Mainers working for [rideshare companies] are able to receive fair compensation for their work.”
“While drafting the language, I realized quickly that this policy area is quite different in comparison to others, because of the disparity in the power dynamic between worker and employer,” said Rep. Sato. “[Rideshare] drivers are gig workers who do not answer to a person, but to an app. An app that is run by a multi-billion dollar tech company out of Silicon Valley.”
Sato noted toward the end of her testimony that she hopes the language she offered will serve as a “starting point” for lawmakers, indicating a hope that it will “draw stakeholders out of the woodwork and bring them to the table.”
Rather than urging legislators to vote in support of the bill, Sato asked lawmakers to “support negotiations with stakeholders to get to draft legislation that works for [rideshare drivers], supports drivers, and uplifts Maine.”
Click Here to Read Rep. Sato’s Full Testimony
Testifying in opposition to the measure was a representative from the Chamber of Progress, a self-described “tech industry coalition devoted to a progressive society, economy, workforce, and consumer climate.”
The group argued in their statement shared with the committee that implementing minimum payment requirements would risk raising prices for Mainers who use rideshare services, as well as reducing opportunities for drivers and jeopardizing access in rural areas.
They go on to cite statistics from jurisdictions where similar laws have already been implemented revealing increased costs for riders and reduced flexibility for drivers due to the introduction of scheduling systems.
At the close of their testimony, the group suggests that lawmakers consider implementing a “portable benefits” program wherein drivers can accrue benefits across multiple platforms without “sacrificing their independent contractor status.”
“We share the goal of ensuring that rideshare drivers can earn a fair living,” Chamber of Progress said. “But the evidence is clear: in city after city, minimum pay mandates have backfired by raising prices for riders, compressing earnings for experienced drivers, and degrading service for everyone.”
Click Here to Read Chamber of Progress’ Full Testimony
Washington State, Minnesota, Massachusetts, and New York City, among others, have already set minimum rates for rideshare drivers.
A work session for LD 877 has been scheduled by the Legislature’s Labor Committee for Wednesday, January 21.
