The two companies dispute the Local Law 52 of 2026, which prevents them from quickly deactivating driver accounts unless there is a “legitimate economic reason” or “just cause.” A law that according to the two giants would also protect i drivers considered dangerous, for example those accused of engaging in sexually inappropriate behavior
Uber he started, Lyft followed suit: the two stars and stripes giants sued the city of New York. The reason? There Local Law 52 of 2026, which generally prevents platforms from ride sharing the ability to quickly deactivate driver accountsexcept in the presence of a “legitimate economic reason” or a “just cause”. A rule which, according to the two companies, it would also protect dangerous driverssuch as those accused of sexually inappropriate behavior, a hot topic for the two operators with Uber being involved in 3,571 lawsuits and Lyft in 54 in federal court in San Francisco. The disputed law – the lawsuit is currently under review, according to a spokesperson for the New York City Law Department – is expected to take effect on July 28, after the City Council largely overturned former Mayor Eric Adams’ veto in January. Let us now find out in detail which aspects of the law Uber and Lyft criticize and hope to have modified or canceled through the lawsuits they have presented.
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the disputed aspects
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As mentioned, in general Uber and Lyft criticize Local Law 52 as being too “generalist” in providing protections to drivers. In particular, companies oppose the requirement to provide drivers with advance notice of fourteen days before deactivating the account, a practice they say would give dangerous drivers the opportunity to continue operating. Even less welcome is the possibility that the two companies will have to reinstate drivers whose accounts were deactivated from 2019 onwards precisely because they had not received such notice. Lastly, Uber and Lyft do not agree – for privacy reasons – on the legal obligation to provide accused drivers with details on alleged misconduct reported by passengers. In any case, Julie Menin, the president of the city council, said she was confident that the law will be confirmed by the courts, thus entering into force for all intents and purposes.
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