Judge Gregory Woods issued the order Tuesday, siding with the companies’ claims that the legislation unconstitutionally interferes with their existing contracts. The law, which the City Council passed in January over Mayor Eric Adams' veto, would have forced platforms to prove 'egregious misconduct' before cutting off a driver's access to the app.
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Federal Judge Blocks NYC 'Just Cause' Driver Protection Law
A federal judge has halted New York City’s attempt to regulate how ride-share giants fire their workers, granting Uber and Lyft a preliminary injunction against Local Law 52. The ruling prevents the city from enforcing new, stricter standards for account deactivation until the underlying legal challenge reaches a final resolution.
Under the blocked regulations, companies would have been required to provide 14 days' notice before deactivation and establish a formal reinstatement process. Judge Woods noted that the companies are likely to prevail in court, suggesting that the city failed to demonstrate how the law serves a broad social interest sufficient to justify the impairment of private contracts. The city has yet to comment on the ruling, leaving the future of the protections in limbo.
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