CHICAGO — A major proposal by Ald. Michael Rodriguez (22nd) could soon require ride-share companies like Uber and Lyft to pay Chicago drivers above minimum wage, including compensation for wait times and time spent driving to pick-ups.
The proposed ordinance — scheduled for debate Thursday in the City Council’s Workforce Development Committee — would:
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Set driver pay at $1.50 per mile and 62.5¢ per minute by July 2026
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Establish a $7 minimum payout per trip
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Require fare breakdowns to be shared with both riders and drivers
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Add driver safety protocols and disciplinary protections
Rodriguez said the measure aims to ensure that drivers are not left unpaid during a large portion of their workday.
“Almost half the time, they are working but not getting paid,” Rodriguez told Chicago Tribune this week.
Uber And Lyft Warn Of Fare Increases, Job Cuts
Both companies have condemned the proposed ordinance, warning it could cause ride fares to increase nearly 40% and potentially reduce demand, impacting tens of thousands of Chicago drivers.
“This disastrous proposal will leave riders, drivers and Chicago worse off,” said Lyft spokesperson CJ Macklin, who likened the plan to New York City’s pay law that forced drivers offline.
Uber spokesperson Josh Gold added that the current draft could “slash city tax revenues by tens of millions of dollars” and affect as many as 10,000 drivers.
A poll commissioned by Uber found 63% of likely voters in Chicago oppose the pay hike plan and consider ride-share “an everyday necessity.”
City Council Divided, Mayor Remains Neutral — For Now
Ald. Matt O’Shea (19th) expressed concern over the ordinance’s timing, citing the city’s upcoming “most difficult budget vote” in recent memory.
“Can we afford to take another hit?” O’Shea said. “Everybody agrees drivers should be paid better, but this could price out working-class riders.”
Mayor Brandon Johnson has yet to take a public stance on the proposal, and it remains unclear if the ordinance will advance to a full Council vote.
Union Support Mixed As Local Organizing Grows
Labor support is divided. The Chicago Gig Alliance, backed by SEIU Local 1 and Mechanics’ Local 701, endorsed the ordinance.
“These unregulated ride-share corporations are reaping millions off the backs of Chicago workers,” said Ronnie Gonzalez, Midwest rep for the machinists union.
However, Operating Engineers Local 150 — which already has a labor peace agreement with Uber — opposes the measure. Executive director Marc Poulos argued it would force ride-share companies to cut back on part-time drivers and flexibility.
“This New York-style legislation doesn’t fit Chicago,” Poulos said.
Should Uber And Lyft Be Forced To Raise Driver Pay In Chicago?
Do you support Ald. Rodriguez’s effort to raise wages — or fear it’ll drive up ride costs and cut jobs? Tell us your thoughts now on ChicagoSuburbanFamily.com.
