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Amazon, Uber, Instacart sue to block NYC law over delivery worker deactivation

By Reuters News

By Daniel Wiessner

Oct 29 (Reuters) - Amazon.com, Uber and Instacart, rivals in app-based food and grocery delivery, have teamed up to sue New York City over a law that bars them from deactivating drivers from their services without advance notice.

  • The complaint filed Wednesday in Manhattan federal court claims the law slated to take effect in January violates the companies' rights to free speech and due process under the US Constitution

  • Law requires "just cause," such as misconduct or failure to perform jobs, and notice before drivers can be deactivated

  • Uber and Lyft earlier this year won a court block on a nearly identical law that applies to app-based ride-hailing services

  • The judge in that case said the law interfered with companies' rights to police the safety of their platforms and to contract with drivers

  • The new lawsuit says the delivery driver law is invalid for the same reasons, and also improperly compels speech and applies retroactively to 2021

  • The companies will seek a preliminary ruling blocking the law pending the outcome of the case

  • Supporters of the laws say that firings can be arbitrary, and that worker safety is compromised when they face pressure to complete more orders

The case is Uber Technologies v. City of New York, US District Court for the Southern District of New York, No. 1:26-cv-09455.

For the companies: Mylan Denerstein of Gibson Dunn & Crutcher; Eli Freedberg of Littler Mendelson; Karen Dunn of Dunn Isaacson Rhee

For the city: Not immediately available

Read more:

Uber, Lyft win court block on NYC law requiring notice before firing drivers

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