Uber sues New York City over ‘reckless’ driver protection law

Summary

• Uber sues New York City in Manhattan federal court
• Local Law 52 restricts driver dismissals without just cause
• Uber claims law violates free-speech and due-process rights
• Law passed by 46-5 City Council vote, effective July 28

NEW YORK – Uber Technologies sued New York City to block enforcement of a new law that it said would unconstitutionally force it to keep drivers it does not want on its platform.

In a complaint filed late on Tuesday night, Uber said the law against “wrongful deactivations” would improperly shield drivers who engage in dangerous, threatening or other inappropriate behavior, threatening public safety and causing “immediate and irreparable harm” by undermining the company’s reputation and goodwill.

It said the law violates its free-speech and due-process rights under the U.S. Constitution, as well as New York’s state constitution. Uber is seeking a permanent injunction plus costs.

A spokesman for New York City’s law department said on Wednesday it is reviewing the complaint, which Uber filed in Manhattan federal court.

Local Law 52 of 2026 would generally prevent large ride-sharing companies such as Uber and Lyft from dismissing drivers absent a “bona fide economic reason” or “just cause.”

Dismissals would be permitted for account sharing, fraud, and “egregious misconduct” such as violence, sexual harassment or assault, and discrimination.

The law is slated to take effect on July 28, following a 46-5 City Council vote in January.

“This Council stands with workers and will continue to fight to ensure all app-based drivers have basic due process protections,” Speaker Julie Menin and Council Member Shekar Krishnan, the law’s main sponsor, said in a joint statement.

UBER WARNS OF ‘KANGAROO’ PROCEEDINGS

Uber objected to being required to give 14 days’ notice before deactivations, saying this gave drivers a window for “retaliation” against passengers, and having to potentially rehire drivers from as early as 2019 who did not receive such notice.

It said the law violates passengers’ privacy by requiring they disclose reports of alleged abuse to accused drivers.

The San Francisco-based company also accused New York City of encouraging “kangaroo” proceedings requiring judges, arbitrators and Department of Consumer and Worker Protection officials to assume that deactivations are unjust, and shifting the burden to Uber to prove otherwise.

“We are suing New York City to block a reckless new law that seeks to strip our ability to immediately remove potentially dangerous drivers and fraudsters from our platform, creating an immediate threat to public safety,” Uber said in a statement.

As of June 1, Uber faced 3,571 lawsuits in nationwide litigation in San Francisco federal court accusing drivers of sexual misconduct.

Lyft did not immediately respond to requests for comment on its legal plans.

(Reporting by Jonathan Stempel in New York; Editing by Matthew Lewis and David Gregorio)