Uber Technologies has filed a lawsuit against New York City, challenging a new law that mandates companies cannot deactivate drivers without "just cause." The ride-sharing giant argues the law infringes on its constitutional rights and poses a public safety risk by preventing the removal of potentially dangerous drivers.
This lawsuit highlights the ongoing tension between ride-sharing companies' operational control and regulatory efforts to protect drivers and passengers, with potential implications for public safety and labor relations in the gig economy.
Uber Technologies has filed a lawsuit in Manhattan federal court against New York City, seeking to block a new law that it claims would unconstitutionally force the company to retain drivers it deems undesirable. The law, Local Law 52 of 2026, is slated to take effect on July 28 and generally prohibits large ride-sharing companies from dismissing drivers without "just cause" or a "bona fide economic reason."
Uber argues that the "wrongful deactivations" law would improperly shield drivers who engage in dangerous, threatening, or inappropriate behavior, thereby threatening public safety and undermining the company's reputation. The company asserts that the law violates its free-speech and due-process rights under both the U.S. and New York State constitutions. Uber is seeking a permanent injunction and costs.
The ride-sharing giant specifically objects to the requirement of providing 14 days' notice before deactivations, stating this could allow drivers a window for retaliation against passengers. Uber also expressed concern about potentially having to rehire drivers from as early as 2019 who did not receive such notice. Furthermore, the company contends that the law infringes on passenger privacy by requiring disclosure of alleged abuse reports to the accused drivers.
Uber further accused New York City of promoting "kangaroo" proceedings, where judges, arbitrators, and city officials would presume deactivations are unjust, shifting the burden of proof to Uber. The company stated it is suing to block a "reckless" law that would strip its ability to immediately remove potentially dangerous drivers and fraudsters from its platform. As of June 1, Uber faced 3,571 lawsuits nationwide related to alleged sexual misconduct by drivers. Lyft had not immediately responded to requests for comment on its legal plans.