Uber, Lyft Win Injunction Against NYC's 'Just Cause' Driver Deactivation Law

By Elias Schisgall

A federal judge blocked New York City from enforcing a law requiring ride-share companies to demonstrate "just cause" to deactivate driver accounts in a victory for Uber and Lyft.

In lawsuits last month, the companies claimed that New York's Local Law 52 violated the terms of their contracts with drivers by setting a series of conditions on when accounts can be deactivated. They asked a court to grant a preliminary injunction blocking the law before it took effect on July 28.

Judge Gregory Woods granted that request in a Tuesday ruling, writing that Uber's and Lyft's arguments were likely to prevail in court and barring the city from enforcing the law until a further court order.

"Uber and Lyft are likely to succeed in showing 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," Woods wrote.

Representatives for the New York City Law Department didn't immediately respond to a request for comment.

Local Law 52 would have required Uber, Lyft, and other ride-share companies to show that a driver whose account was deactivated had engaged in "egregious misconduct" or been recently disciplined. It also required a 14-day notice before any deactivation and allowed drivers to petition for reinstatement.

The law was passed in January over the veto of former Mayor Eric Adams.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

July 22, 2026 12:48 ET (16:48 GMT)