A federal judge has ruled that New York City cannot prohibit Uber Technologies and Lyft from deactivating drivers without advance notice, finding the law unconstitutional. The ruling blocks enforcement of the law, which was set to take effect July 28.
The ruling prevents New York City from enforcing a novel law aimed at protecting ride-share drivers from arbitrary deactivation, impacting labor protections for gig workers and the operational autonomy of ride-hailing platforms.
A federal judge has blocked New York City's law that would have required ride-hailing companies like Uber and Lyft to provide drivers with 14 days' notice before deactivating them from their apps. U.S. District Judge Gregory Woods ruled that the law, set to take effect July 28, is unconstitutional.
In his ruling, Woods stated that the law benefits a narrow class of drivers and unduly interferes with the companies' right to maintain the safety of their platforms. He issued a preliminary injunction against the city's enforcement of the law pending the outcome of lawsuits filed by Uber and Lyft.
The companies had argued that the law violated their due process and free speech rights, and could lead to unsafe drivers remaining on the road. The law was passed in January after the New York City Council overrode a veto by former Mayor Eric Adams, who had expressed concerns about the creation of a complex bureaucracy to handle deactivation claims.