Lyft, Uber sue NYC to block driver-retention law

• The law requires 14 days' notice before driver deactivation and potential rehiring of drivers let go since 2019 without proper notice
• Uber faces 390 lawsuits and Lyft faces 54 lawsuits nationwide related to driver sexual misconduct as of June 1
• Companies object to privacy requirements forcing passengers to detail alleged misconduct directly to accused drivers and heightened burden of proof in deactivation challenges

Lyft and Uber Challenge NYC Driver-Retention Law

Lyft and Uber Technologies have filed separate federal lawsuits in Manhattan to block a New York City law they claim would force them to retain unsafe drivers on their platforms. Lyft filed its complaint on June 10, 2026, one day after Uber initiated similar legal action.

Key Details:

The challenged legislation, Local Law of 2026, prevents large ride-sharing companies from quickly terminating drivers unless they have a "bona fide economic reason" or "just cause." The law is scheduled to take effect July 28, 2026, following the City Council's January override of former Mayor Eric Adams' veto.

Both companies argue the law violates their constitutional due process and free speech rights. They describe it as "hazardous" (Lyft) and "reckless" (Uber), claiming it would cause irreparable harm to their reputations while keeping potentially dangerous drivers, including those accused of sexual misconduct, on the road.

Specific Objections:

The companies oppose requirements to provide drivers 14 days' notice before deactivation and potentially rehire drivers terminated since 2019 without proper notice. They also object to provisions requiring passengers to detail alleged misconduct directly to accused drivers and a heightened burden of proof in deactivation disputes.

Market Context:

As of June 1, Uber faced 200 lawsuits and Lyft faced 54 lawsuits in ongoing nationwide litigation regarding driver sexual misconduct, highlighting the companies' existing liability concerns.

City Council Speaker Julie Menin and Council Member Shekar Krishnan, the law's primary sponsor, defended the legislation, emphasizing it provides "basic due process protections" for app-based drivers and expressed confidence it will withstand legal challenge.