ST. PAUL (AP) — Ride-hailing companies Uber and Lyft said Monday they will keep operating in Minnesota now that state lawmakers have passed a measure that will increase driver pay, but at a lower rate than approved by Minneapolis officials earlier this year.

Although the new pay minimums are less than the rate approved by the Minneapolis City Council in March, they are intended to ensure drivers across the state are paid at least the city’s minimum wage equivalent of $15.57 an hour, though they also might mean increased costs for passengers.

Minnesota lawmakers approved the pay plan Sunday night, on the last day of the legislative session and sent the measure to Gov. Tim Walz, who has said he will sign the bill into law. The deal resolves months of uncertainty after the higher rate approved by the Minneapolis council prompted Uber and Lyft to say they would leave not only Minneapolis but the entire state.

“I am so, so, so overwhelmingly happy,” said Eid Ali, president of the Minnesota Uber/Lyft Drivers Association, a group of hundreds of drivers who have been advocating at city and state levels for higher pay since June 2022. “It’s an amazing victory for drivers.”

The new compromise requires ride-hailing companies to pay drivers a minimum of $1.28 per mile and $0.31 per minute while transporting riders anywhere in the state, starting Dec. 1.