Uber sues New York City over 'reckless' driver protection law

Uber Technologies has filed a lawsuit against New York City, seeking to block a new law designed to protect drivers from wrongful deactivations. The ride-sharing giant contends that the law, Local Law 52 of 2026, unconstitutionally forces it to retain drivers it deems undesirable, thereby threatening public safety and damaging its reputation.

In its complaint filed in Manhattan federal court, Uber argues that the law violates its free speech and due process rights under both the U.S. and New York State constitutions. The company asserts that the law would improperly shield drivers who engage in dangerous, threatening, or inappropriate behavior. Uber is seeking a permanent injunction to prevent the law's enforcement, which is slated to take effect on July 28.

The law generally prohibits large ride-sharing companies like Uber and Lyft from dismissing drivers without a "bona fide economic reason" or "just cause." Exceptions are made for issues such as account sharing, fraud, and "egregious misconduct," including violence, sexual harassment or assault, and discrimination. Uber objects to the requirement of providing 14 days' notice before deactivations, warning it could allow for driver retaliation against passengers. The company also criticizes the law for potentially requiring the rehiring of drivers from as early as 2019 who did not receive such notice.

Uber further accused New York City of encouraging "kangaroo" proceedings, where judges and officials are presumed to find deactivations unjust, shifting the burden of proof to Uber. A spokesperson for New York City's law department stated they are reviewing the complaint. This legal challenge comes as Uber faces thousands of lawsuits nationwide related to alleged sexual misconduct by drivers.

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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.