Uber's 2024: Wages, Fraud, and Fallout


## A Year of Reporting: From Rideshare Rallies to Winery Wars

On Thursday, May 16th, a sea of determined faces surrounded the Minnesota State Capitol. Members of the MN Uber Lyft Drivers Association (MULDA) marched, their voices united in a demand for fair compensation from Uber and Lyft. This powerful image, captured by A.J. Olmscheid for Senate Media Services, perfectly encapsulated a year of reporting that took me from the expected—picket lines, job sites, and the state Capitol—to the unexpectedly diverse: a church basement brimming with dairy farm workers near St. Cloud, a perpetually busy airport parking lot, and even a virtual classroom connecting Minnesota students with an instructor halfway across the globe.

This year’s work has been a privilege, offering opportunities to investigate stories at the intersection of work, money, and politics across Minnesota. Here are some of my most memorable assignments from 2024:

The Rideshare Revolution: A Hard-Fought Victory

Minnesota became the second state to legally mandate minimum pay rates for Uber and Lyft drivers. This victory, achieved in May, marked the culmination of a tumultuous 18-month campaign. The journey was fraught with challenges: a gubernatorial veto, infighting amongst driver advocacy groups, threats from the ride-sharing giants to abandon the Twin Cities market, a groundbreaking study on driver compensation, and a tense standoff between Minneapolis City Council members and state lawmakers.

While the core issue – underpaid drivers facing powerful corporations – seemed simple, the complexities of establishing fair working conditions created deep divisions among both drivers and legislators. The Minneapolis City Council’s attempt to enact its own minimum rates led to a tense showdown with Uber and Lyft, who threatened to withdraw their services. The emergence of several new, oddly-named companies (Moov, Wridz, MyWeels) promising to fill the void proved short-lived, as the state legislature ultimately preempted city ordinances. The statewide minimum pay rates, effective December 1st, are projected to increase driver earnings by roughly 14% compared to 2022. The legislation also offers enhanced protection against unfair deactivations, broader insurance coverage starting January 1st, and mandates that the ride-sharing companies contract with a non-profit to provide driver support services.

Wage Theft on a Dairy Farm: A System Failing Workers

In January, Attorney General Keith Ellison announced a $3 million wage theft lawsuit against a central Minnesota dairy farm, Evergreen Acres. While intended as a landmark case against labor abuses prevalent in the industry, the outcome highlighted the systemic issues within the legal system. Despite wage theft being a felony, the case underscored how infrequently it’s treated as a serious crime, reinforcing the perception of bias towards the wealthy and white.

The lawsuit detailed egregious conditions: hundreds of undocumented workers subjected to millions of dollars in stolen wages, forced to live in substandard housing (garages, barns), and subjected to verbal and physical abuse. The eventual settlement of $250,000 – a fraction of the estimated stolen wages – left many feeling disheartened. The lack of criminal charges further solidified the feeling of systemic injustice, leaving farm workers concerned about future abuses.

Political Entanglements: A Winery, Fraud Allegations, and a Congresswoman

One of the year’s most surprising revelations involved U.S. Rep. Ilhan Omar, her husband Tim Mynett, and their involvement in a California winery, eStCru, along with a long-time Democratic operative. While Omar disclosed spousal income from the winery, the full story emerged through a lawsuit alleging fraud against Mynett and his business partner, Will Hailer. The suit accused them of failing to deliver on a promised return on investment, leading to a settlement. Further investigation revealed that this was not an isolated incident, with Hailer facing similar fraud accusations in South Dakota.

The K-12 Education Credit Scam: A State-Wide Crisis of Fraud

My final investigation of the year exposed the alleged misuse of a state tax credit designed to support low-income families’ access to tutoring, music lessons, and educational supplies. Dozens of mothers reported losing thousands of dollars to two tutoring companies, Achievers Tutoring and Success Tutoring, which promised to address pandemic-related learning loss but instead provided subpar online instruction from foreign teachers. This complex investigation delved into a tangled web of Filipino online tutors, an alleged scammer who lobbied legislators, violent threats, and bureaucratic obstacles. The K-12 Education Credit scam is part of a larger pattern of fraud affecting millions of dollars allocated to vital state programs.

This year’s reporting journey has reinforced the urgency of holding those in power accountable and giving voice to those often overlooked. The fight for fair compensation for rideshare drivers, the struggle for justice for exploited farmworkers, the uncovering of political entanglements and widespread fraud – these are stories that demand attention and action. The pursuit of truth and justice continues.

By admin

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