Lyft joined Uber in suing New York City to block a new law that they claim would force them to retain drivers accused of misconduct, violating constitutional rights and public safety.
The lawsuits challenge the balance between driver protections and platform safety, potentially impacting ride-sharing operations and passenger security in New York City.
Lyft has joined Uber in filing lawsuits against New York City to block a new law that the ride-sharing companies argue would force them to retain drivers who pose risks to public and passenger safety. The lawsuits challenge Local Law 52 of 2026, which generally prohibits large ride-sharing companies from swiftly dismissing drivers without "just cause" or a "bona fide economic reason."
Both companies contend the law violates their due process and free speech rights under the U.S. Constitution. They also stated the law would cause irreparable harm by undermining their reputations and goodwill while keeping unsafe drivers, including those accused of sexual misconduct, on the road. Lyft described the law as "hazardous," while Uber called it "reckless." The law is scheduled to take effect on July 28, following an overwhelming override of former Mayor Eric Adams' veto by the City Council in January.
The companies object to requirements that they provide drivers 14 days' notice before termination and potentially rehire drivers deactivated since 2019 for not receiving such notice. They also raised privacy concerns regarding the requirement for passengers to detail alleged misconduct to accused drivers and objected to a heightened burden of proof when defending against deactivation challenges in court or arbitration.
New York City's law department stated it is reviewing both cases. City Council Speaker Julie Menin and Council Member Shekar Krishnan, the law's main sponsors, expressed confidence that the law would be upheld and that the council would "fight to ensure all app-based drivers have basic due process protections."