Key facts
- Lyft and Uber have filed lawsuits in Manhattan federal court to block New York City's Local Law 52 of 2026.
- The law requires ride-sharing companies to have 'bona fide economic reason' or 'just cause' to dismiss drivers.
- Companies argue the law violates their constitutional due process and free speech rights.
- Lyft and Uber claim the law could force them to retain unsafe drivers, including those accused of sexual misconduct.
- The law mandates a 14-day notice period before driver dismissal and may require rehiring drivers deactivated since 2019.
- City Council members stated they will fight to uphold the law and ensure due process protections for drivers.
Lyft has joined Uber in filing lawsuits against New York City to block a new law that would significantly alter how ride-sharing companies dismiss drivers. The companies contend that Local Law 52 of 2026, which requires a 'bona fide economic reason' or 'just cause' for dismissal and a 14-day notice period, infringes upon their constitutional rights to due process and free speech.
Both ride-sharing giants argue that the law, which is set to take effect on July 28, would undermine public and passenger safety by preventing swift removal of drivers accused of misconduct, including sexual assault and fraud. They also object to provisions requiring passengers to detail alleged misconduct to accused drivers and the potential rehiring of drivers deactivated since 2019. The companies stated the law threatens irreparable harm to their reputation and goodwill.
New York City's law department is reviewing the cases. City Council Speaker Julie Menin and Council Member Shekar Krishnan, the law's sponsor, have expressed confidence that the legislation will be upheld, emphasizing the need for due process protections for app-based drivers.