Uber, Instacart and Amazon have filed a federal lawsuit to block a New York City law that would bar delivery companies from cutting workers off their apps without notice, a stated reason or a chance to appeal, Streetsblog NYC reported. The three companies sued on October 28 in the U.S. District Court for the Southern District of New York, seeking to stop Local Law 34 from taking effect in January 2027.

The law, passed by the City Council in December 2025 as Introduction 1332, bars a delivery service from deactivating a worker after a 30-day probation period except for “just cause” or a bona fide economic reason. It requires companies to use progressive discipline, so that a permanent cutoff is treated as a last resort, and to give a deactivated worker written notice with “all the precise and detailed reasons” within 72 hours. Companies must provide at least 120 days’ advance notice for layoffs tied to economic reasons, hand over the worker’s performance data and customer complaints, and maintain a process through which a worker can challenge a deactivation.

The complaint argues that Local Law 34 violates the companies’ constitutional rights because it undermines their “ability to exercise their own respective business judgments about who is allowed access to their applications,” according to Streetsblog NYC, which quoted the filing.