A federal judge in Manhattan has ruled that New York City cannot prohibit Uber Technologies and Lyft from deactivating drivers from their apps without advance notice, citing that the law is unconstitutional.
Background of the Law
The law, which was set to take effect on July 28, required ride-hailing services to give drivers 14 days’ notice before deactivating them from apps, with an exception for “egregious misconduct.” It also allowed for the potential rehiring of drivers deactivated since 2019 solely because they did not receive such notice.
Uber and Lyft filed lawsuits against the law, stating that it violated their due process and free speech rights under the U.S. Constitution. They argued that the law threatened to undermine their reputation and goodwill while keeping unsafe drivers on the road.
U.S. District Judge Gregory Woods agreed with the companies, stating that the law protects a narrow class of drivers and does not advance the broader social or economic interest which the Constitution requires to permit the severe impairment of their contracts.
Reaction from the Companies
Lyft expressed pleasure that the court recognized the serious safety concerns at the heart of this challenge. Uber also welcomed the decision, stating that driver fairness and rider safety can and must go hand in hand.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
