Uber sues NYC over "reckless" driver-protection law

• The law requires 14 days' notice before deactivations and potential rehiring of drivers dismissed without notice since 2019, which Uber says creates a window for driver retaliation against passengers
• Uber argues the law establishes 'kangaroo' proceedings that presume deactivations are unjust and force the company to prove otherwise, while also requiring disclosure of passenger abuse reports to accused drivers
• The New York City Council passed the law 46-5 in January, permitting dismissals only for account sharing, fraud, or egregious misconduct like violence, sexual harassment, or discrimination

Uber Sues NYC Over Driver-Protection Law

Uber Technologies filed a lawsuit in Manhattan federal court on June 8, 2025, seeking to block a New York City law restricting its ability to deactivate drivers. The law, scheduled to take effect July 28, 2025, passed the City Council with a 46-5 vote in January.

Key Legal Challenges:

The "wrongful deactivation" law would prevent large ride-sharing companies like Uber and Lyft from dismissing drivers without "bona fide economic reason" or "just cause." Uber claims the legislation violates its free-speech and due-process rights under both the U.S. and New York state constitutions.

Uber's Primary Concerns:

• The law requires 14 days' notice before deactivations, creating a window for potential driver retaliation against passengers
• Potential rehiring of drivers deactivated as early as 2019 without proper notice
• Requirements to disclose passenger abuse reports to accused drivers, compromising privacy
• "Kangaroo" proceedings that presume deactivations unjust, shifting burden of proof to Uber

The company argues the law would "improperly shield drivers who engage in dangerous, threatening or other inappropriate behavior," threatening public safety and causing "immediate and irreparable harm" to its reputation.

Context:

Uber faces significant litigation pressure, with 3,571 lawsuits nationwide related to driver conduct, including sexual misconduct allegations consolidated in San Francisco federal court as of June 1.

The law permits dismissals for account sharing, fraud, and "egregious misconduct" including violence, sexual harassment, assault, and discrimination. NYC's Law Department confirmed it is reviewing Uber's complaint. Lyft has not commented on potential legal action.