The Minneapolis City Council passed an ordinance Thursday that guarantees a minimum pay floor for rideshare drivers in the city working for companies such as Uber and Lyft, despite threats from the companies that they will leave the city.

The ordinance would guarantee drivers earn $1.40 per mile, $0.51 per minute, and no less than $5 per ride. Drivers would also keep 80% of fees collected from canceled rides.

“It’s time to pass this Uber & Lyft Minimum Wage Ordinance,” Councilman Jason Chavez said on X. “I’m with my constituents who are demanding we close these loopholes, protect workers & hold billionaire corporations accountable.”

Including tips and other bonuses, Lyft drivers in Minneapolis and St. Paul, Minnesota, make $25.94 per “engaged hour,” subtracting gas expenses, according to the company.

“The Council’s proposed bill, however, ignores economic reality,” a Lyft statement reads. “It pushes the same egregious mandates that were vetoed by the Mayor last year, and it could make rides on Lyft too expensive for too many. Should it become law, Lyft would be forced to cease operations in Minneapolis and possibly the rest of the state when it takes effect.”

Lyft and Uber have indicated they will cease operations in the city on May 1 if the ordinance takes effect.

Mayor Jacob Frey and Gov. Tim Walz (D-MN) both have vetoed similar measures. Frey said he wants the city council to work with the companies to come to an agreement.

“Talk with them, see what they’re willing to do,” Frey said. “You might find a win-win situation where you’re able to keep this important service and give … drivers the raise that they need.”

A statewide task force is set to release data Friday on rideshare economics.

“The statewide report is literally going to be released tomorrow,” Frey said in response to the council. “It’s irresponsible to pass policy today when we’ll have the data tomorrow.”

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Frey vowed to veto the measure again, but councilmembers say they have enough votes to override it.

New York, California, and Washington have similar pay floors, and Uber and Lyft continue to operate in those states.