Minnesota lawmakers approve minimum pay deal for Uber, Lyft drivers (NASDAQ:LYFT)

Minnesota lawmakers have reportedly struck a deal with Uber (New York Stock Exchange: Uber) and Lyft (Nasdaq: Lyft) to set minimum wage standards for drivers, which is expected to prevent ride-sharing companies from leaving the market.

Uber (UBER) and Lyft (LYFT) have threatened to do so Withdraw their business from the state of Minnesota Regarding a proposed decree that would give taxi drivers increased worker protections.

Under the new agreement, the statewide minimum wage for taxi drivers will be $1.28 per mile and $0.31 per minute. The rule would exceed the higher rate initially proposed by the Minneapolis City Council, CNN reported.

“When you take it as a mixed rate, that results in a 20% increase in driver wages in the state of Minnesota,” Jamie Long, the state's Democratic House Majority Leader, told reporters Saturday night, according to CNN.

The bill also includes “the strongest driver insurance in the entire country,” Long added.

If the bill becomes law, the new prices will take effect next January.