Uber and Lyft Challenge NYC Driver Protection Law in Federal Court

The companies filed separate lawsuits this week in the Southern District of New York, targeting provisions that force platforms to demonstrate 'egregious misconduct' or prior disciplinary action before cutting off a driver’s access. Under the new rules, firms must also provide 14 days' notice prior to deactivation, a requirement the companies claim undermines their ability to mitigate immediate risks to passengers and the public.

Beyond current operational changes, the litigation highlights a retroactive concern. Uber’s filing contends the law creates a technicality that could force the reinstatement of drivers terminated as far back as 2019, even in instances involving serious safety complaints. Furthermore, the platforms are pushing back against requirements to disclose sensitive, non-public data regarding the specific internal logic behind account deactivations. A representative for the New York City Law Department stated the city is currently reviewing the filings.