Uber Technologies has filed a lawsuit against New York City, seeking to block a new driver protection law that the ride-hailing company says could make it harder to remove dangerous drivers from its platform.
The lawsuit, filed in federal court in Manhattan, challenges Local Law 52 of 2026, a measure approved by the City Council in January by a 46-5 vote. The law is scheduled to take effect on July 28.
Uber argues that the legislation would require the company to retain drivers it no longer wants on its platform and could expose passengers to unnecessary risks.
“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,” the company said in a statement.
Gig Economy Regulation Sparks Legal Battle
The new law would generally prevent large ride-sharing companies such as Uber Technologies (UBER) and Lyft (LYFT) from removing drivers unless there is a legitimate economic reason or “just cause.”
The legislation still allows deactivations involving fraud, account sharing, violence, sexual harassment, assault, discrimination, and other serious misconduct.
However, Uber argues that being required to provide 14 days’ notice before certain deactivations could create opportunities for retaliation against passengers and weaken its ability to respond quickly to complaints.
The company also objected to provisions that could require it to reinstate drivers dating back to 2019 if proper notice procedures were not followed.
Employment Law Concerns and Due Process Debate
Uber claims the law violates its constitutional rights, including free speech and due process protections under both federal and state law.
The company further argues that the legislation places an unfair burden on ride-sharing platforms by assuming deactivations are unjust unless proven otherwise.
New York City officials have defended the measure. City Council Speaker Julie Menin and Council Member Shekar Krishnan, the law’s main sponsor, said in a joint statement that app-based drivers deserve basic due process protections.
The city’s law department said it is reviewing Uber’s complaint.
Public Safety Litigation Adds Pressure
The legal dispute comes as Uber continues to face broader scrutiny over rider safety.
As of June 1, the company was facing 3,571 lawsuits in nationwide litigation alleging sexual misconduct by drivers.
The outcome of the case could have major implications for future gig economy regulation, employment law, and public safety litigation across the United States, potentially influencing how ride-sharing companies manage driver discipline and passenger protection.
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