TREE NEWS update: Uber Technologies, Amazon and Instacart filed a federal lawsuit arguing that New York City’s law barring the companies from deactivating delivery workers without cause is unconstitutional. The companies asked the court to block the regulation, set to take effect in January, saying it would cause “immediate and irreparable harm” to app-based businesses by forcing them to disclose sensitive information and retain or reinstate courier accounts.
Uber, Amazon, Instacart Sue New York City Over Delivery Worker Deactivation Law
The fight reframes gig-work regulation as a constitutional question rather than a labor dispute, which matters because it shifts the venue from city agencies to federal courts. The companies' core objection — that due-process protections for couriers mean disclosing sensitive information and retaining accounts — signals where platform economics and worker-protection rules collide. Other cities weighing similar deactivation standards will be watching whether the court blocks the law before it takes effect. The open question is whether this becomes a template for challenging local gig rules nationwide.
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