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Uber, Amazon and Instacart Sue New York Over Local Law 34

Uber, Amazon and Instacart filed a federal lawsuit in Manhattan to block Local Law 34, which prevents deactivating couriers without justified cause or a…

--- The context --- In New York, delivery platforms can deactivate a courier account and cut off access to work, and the city chose to regulate that power. Local Law 34 bars deactivating a contracted worker without demonstrated justified cause, such as misconduct, or a genuine economic reason, and requires prior notice. The law takes effect in January, so the window to dispute its reach is short and the conflict moved immediately to a federal court. --- The facts --- Uber, Amazon and Instacart sued the city of New York to block the law. The lawsuit was filed on October 28, 2026, in the federal court of the Southern District of New York, in Manhattan, under number 1:26-cv-09455, represented by Sidley Austin and Gibson Dunn & Crutcher. The filing runs 94 pages and seven counts. According to the lawsuit, the companies plan to seek a preliminary injunction, a court order that would suspend the law while the case advances. --- The positions --- The companies hold that the law violates the First and Fourteenth Amendments of the United States Constitution, which protect freedom of expression and due process, plus the contracts clause. They argue the city rewrites their agreements with couriers and that some obligations reach decisions taken since 2021. The companies state that deactivations are relatively rare and almost always linked to safety or fraud, and that the law would force them to reopen cases removed for those reasons. Instacart said the rule will delay removing accounts that pose safety risks, could force it to disclose sensitive information about how it detects fraud, and that it sent more than 50 questions to the city Department of Consumer and Worker Protection without a response. Instacart also assured that its shoppers receive an explanation for a removal, an avenue of appeal and a human review. City representatives did not respond immediately. --- What remains unknown --- It remains unknown whether the court will grant the preliminary injunction and suspend Local Law 34 before it takes effect in January, or how the city will answer the constitutional arguments. As a precedent, Local Law 52, on Uber and Lyft driver deactivations, was blocked on July 21 by federal judge Gregory Woods through a preliminary injunction, in litigation that remains open. Instacart calls Local Law 34 substantially similar. --- Unanswered questions --- Will the court grant the preliminary injunction and suspend Local Law 34 before January? Will the city answer the arguments on the First and Fourteenth Amendments and the contracts clause? How will the justified cause requirement apply to safety or fraud cases? --- EPM analysis --- The case pits courier protection against a removal without a demonstrated cause against the capacity of platforms to remove accounts over safety or fraud. The Local Law 52 precedent weighs heavily, because a federal judge already blocked a similar law after considering it likely to gravely affect contracts. 📌 EPM Take: In EPM's view, the lawsuit places the court before a delicate balancing decision, because Local Law 34 protects couriers who can lose their income through a deactivation, but its application cannot leave platforms without a response to safety and fraud. The justified cause standard, prior notice and human review offer a reasonable ground of accountability. The injunction will say whether that balance is debated with the law in force or suspended.
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