A bill aimed at increasing wages for rideshare drivers passed in a Minnesota House committee hearing 8-4 on Tuesday.

All Democrats were in favor and all Republicans opposed.

Uber and Lyft testified at the hearing and warned they would leave the state if this measure becomes law.

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Lawmakers heard from rideshare drivers about the need to get paid more money to provide for their families.

“Uber and Lyft drivers have been subject to exploitation for too long,” said Edi Ali, representing the Minnesota Uber/Lyft Drivers Association. “The future of thousands of hard-working drivers and their families hang in the balance.”

Driver pay was the main topic of conversation at the House committee hearing.

In the bill, lawmakers propose Uber and Lyft drivers across the state make $1.27 per mile and 49 cents a minute.

That’s lower than the recently passed Minneapolis City Council mandate of $1.40 per mile and 51 cents a minute. In Tuesday’s hearing, rideshare companies said that rate is still too high.

“The rate in the bill as it stands exceeds the range that’s a part of the Department of Labor and Industries study,” John Reich, Lyft representative, said.

That state study recommended drivers earn at least 89 cents per mile and 49 cents a minute, which is well below the rates proposed by the council and state.

“We know that when you price rides out of the reach of riders, utilization goes down,” Joel Carlson, Uber representative, said.

The rideshare companies said the proposed wage increase will have a trickle-down effect, forcing riders to pick up the tab and drivers would make less money in the long run.

“Combined with the insurance provisions, the rate would nearly double the cost of a ride,” Reich said.

“When the very same thing happened in Seattle, drivers drove less, riders rode less, they made less money and it cost more money to drive,” Rep. Joe McDonald, R-Delano, said.

Lawmakers on the other side of the aisle see it differently.

“If your business model relies on keeping people in poverty, you do not have a viable business in Minnesota,” Rep. Hodan Hassan, DFL-Minneapolis, said.

This bill will make its way to a different committee after passing on Tuesday. The law could still be amended along the way.