Uber has filed a lawsuit against New York over a new law protecting drivers from termination
Uber Technologies has filed a lawsuit against New York City authorities in an effort to block the implementation of a new law that restricts the ability of taxi and ride-sharing services to remove drivers from their platforms.
According to Uber, the new rules could negatively impact passenger safety and violate the company’s constitutional rights.
According to the lawsuit filed in federal court in Manhattan, the company believes that the law against “unjustified deactivations” will force it to keep drivers on the platform whom it considers dangerous or in violation of service rules.
The new law stipulates that major ride-hailing services, including Uber and Lyft, cannot deactivate drivers without a “good-faith economic reason” or “good cause.”
At the same time, the law allows for termination of the partnership in cases of:
- use of someone else’s account;
- fraud;
- violence;
- sexual harassment;
- attacks;
- discriminatory behavior;
- other serious violations of the rules.
The law is set to take effect on July 28, 2026. It was previously approved by the New York City Council by a majority vote—46 council members voted in favor, while five opposed it.
The company is particularly concerned about the requirement to notify drivers of their deactivation 14 days before the decision takes effect. Uber believes this could create additional risks for passengers.
Company representatives claim that drivers who are aware of an upcoming suspension could use this period to take revenge on customers or engage in other inappropriate behavior.
Additionally, the company argues that the new rules could force it to reinstate drivers on the platform who were deactivated in previous years without following the new procedures.
Uber also claims a violation of its rights to free speech and due process, guaranteed by the U.S. Constitution and New York state law.
Separately, the company expressed concerns regarding user privacy. In its view, the law could require the service to disclose information from passenger complaints to drivers, potentially jeopardizing customers’ right to privacy.
Currently, the New York Attorney General’s Office has stated that it is reviewing the filed lawsuit. The court proceedings may determine whether the new rules will take effect as scheduled.
Earlier, Uber announced a massive investment of over $10 billion in the autonomous transportation sector, marking a departure from its traditional model of minimizing its own assets. The strategic plan involves purchasing thousands of self-driving cars and directly funding developers of related technologies.
As a reminder, a federal court in Phoenix held Uber liable for sexual assault committed by one of the company’s drivers. The victim, Jaylene Dean, will receive $8.5 million in compensation—the first such verdict among more than 3,000 similar cases against Uber in the U.S.
Uber Eats has introduced a new AI-powered chatbot called Cart Assistant, designed to simplify and speed up the process of placing grocery orders.
