* Uber ( UBER ) says New York City law shields dangerous drivers and
fraudsters.
* Law slated to take effect on July 28
* New York City reviewing Uber's ( UBER ) complaint
* Uber ( UBER ) faces 3,571 lawsuits over driver conduct
By Jonathan Stempel
NEW YORK, June 10 (Reuters) - Uber Technologies ( UBER )
sued New York City to block enforcement of a new law that it
said would unconstitutionally force it to keep drivers it does
not want on its platform.
In a complaint filed late on Tuesday night, Uber ( UBER ) said the
law against "wrongful deactivations" would improperly shield
drivers who engage in dangerous, threatening or other
inappropriate behavior, threatening public safety and causing
"immediate and irreparable harm" by undermining the company's
reputation and goodwill.
It said the law violates its free-speech and due-process
rights under the U.S. Constitution, as well as New York's state
constitution. Uber ( UBER ) is seeking a permanent injunction plus costs.
A spokesman for New York City's law department said on
Wednesday it is reviewing the complaint, which Uber ( UBER ) filed in
Manhattan federal court.
Local Law 52 of 2026 would generally prevent large ride-sharing
companies such as Uber ( UBER ) and Lyft ( LYFT ) from dismissing drivers
absent a "bona fide economic reason" or "just cause."
Dismissals would be permitted for account sharing, fraud,
and "egregious misconduct" such as violence, sexual harassment
or assault, and discrimination.
The law is slated to take effect on July 28, following a
46-5 City Council vote in January.
UBER WARNS OF 'KANGAROO' PROCEEDINGS
Uber ( UBER ) objected to being required to give 14 days' notice
before deactivations, saying this gave drivers a window for
"retaliation" against passengers, and having to potentially
rehire drivers from as early as 2019 who did not receive such
notice.
It said the law violates passengers' privacy by requiring
they disclose reports of alleged abuse to accused drivers.
The San Francisco-based company also accused New York City
of encouraging "kangaroo" proceedings requiring judges,
arbitrators and Department of Consumer and Worker Protection
officials to assume that deactivations are unjust, and shifting
the burden to Uber ( UBER ) to prove otherwise.
"We are suing New York City to block a reckless new law that
seeks to strip our ability to immediately remove potentially
dangerous drivers and fraudsters from our platform, creating an
immediate threat to public safety," Uber ( UBER ) said in a statement.
As of June 1, Uber ( UBER ) faced 3,571 lawsuits in nationwide litigation
in San Francisco federal court accusing drivers of sexual
misconduct.
Lyft ( LYFT ) did not immediately respond to requests for comment on
its legal plans.