NYC Deactivation Law (Local Law 52): Status & Rules

In short: NYC passed a law in January 2026, Local Law 52 of 2026 (bill Int. 276-A), that would stop Uber, Lyft and other high-volume apps from deactivating drivers without just cause or a bona fide economic reason, require 14 days' notice in most cases, and let drivers win reinstatement and back pay. But the law is on hold. A federal court blocked it in July 2026, before its July 28 start date, and the case is on appeal. Until a court says otherwise, the app's own appeal process is what applies to you.

This page walks through what the law actually says, section by section, so you know what would change if it takes effect, and what you can do today.

How the law got here

The history above is from the Council's Legistar file. Reuters, as published by Insurance Journal, reported that the judge wrote that 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 U.S. Constitution requires to permit the severe impairment of their contracts." A preliminary injunction is not a final decision: the court can still rule either way at the end of the case, and the appeals court can change it.

Who the law would cover

It covers "high-volume for-hire vehicle drivers": people who drive for a high-volume for-hire service (the app companies TLC licenses as high-volume bases, such as Uber and Lyft), or who drive for someone else because of a dispatch or referral from one. It does not cover yellow or green taxi drivers or drivers at other bases.

It does not apply during a driver's probation period: the first 30 calendar days after your first trip for that company.

What counts as a "deactivation"

The law's definition is wider than "account closed." A deactivation would include:

• an indefinite or permanent discharge, termination or layoff; or
• a block on accepting trips that lasts at least 72 hours in a row, or several blocks that add up to at least 168 hours in one year.

That second part means long app lockouts would count as deactivations under this law.

The only allowed reasons

After probation, the company could deactivate you only for:

1. Just cause: you engaged in egregious misconduct, failed to satisfactorily perform your job duties, or engaged in other misconduct that is "demonstrably and materially harmful" to the company's legitimate business interests; or
2. A bona fide economic reason: business records showing a proportionate drop in sales or profit in the prior fiscal quarter, or the company stopping its driving services in the city; or
3. where another law or rule requires the deactivation.

For just cause (except egregious misconduct), the company would have to show it used progressive discipline (steps like warnings and training before deactivation) under a written policy it gave you, and it could not rely on discipline more than 1 year old. A fact-finder would also look at things like whether you knew the rule, whether the rule was applied consistently, and whether the investigation was fair. The company would carry the burden of proof.

Notice the law would require

Every notice would also have to tell you about your right to challenge, how to start informal resolution, your chance to submit evidence, your right to complain to DCWP or sue, and unemployment insurance rights for eligible drivers. A fact-finder could not consider reasons the company left out of the notice.

How you would challenge a deactivation

The company would also have to give you your driving performance data, all customer comments, ratings and complaints about you, and anonymized reports on how it disciplined other drivers for similar conduct in the past 12 months. For 6 years after deactivation, you would keep access to the data you had before, including tax and payment records.

Remedies and penalties

If DCWP found a wrongful deactivation, the law says it "shall order" reinstatement (unless you waive it) and back pay equal to what you normally would have earned from that company, based on your average daily earnings over a comparable period. DCWP could subtract extra money you earned elsewhere, and reduce back pay if the company proves you did not reasonably try to replace your income. If the company claimed egregious misconduct that was not proven, back pay would start 15 days after the deactivation.

The 7-year lookback for past deactivations

A driver deactivated during the 7 years before the law's effective date could petition the company for reinstatement within 1 year after that date. The company would have 30 days to reinstate you, unless the old deactivation happened during probation, was for just cause or an economic reason, or was required by law. If it refuses, it must explain all its reasons in writing, and you could challenge that through informal resolution, a DCWP complaint, or court (within 1 year after the effective date).

A company that is not taking on any new drivers (and had not in the 3 months before the law's start date) could put returning drivers on a waitlist and must bring them back in order before adding new drivers.

Because the law has not taken effect, the 1-year petition window has not opened. Do not pay anyone who says they can file a petition for you now.

Other parts of the law

• Written progressive discipline policy, given to each driver, clear enough "that a reasonable person can understand" what can lead to deactivation, with 14 days' notice of changes.
• Records: the company keeps compliance records for 3 years.
• Annual DCWP report on deactivations, complaints and outcomes.
• Help program: DCWP would run a phone and email information line (not legal advice), and the city may fund legal services for drivers.
• TLC's role is unchanged: the law says it does not limit TLC's power to issue, suspend or revoke licenses, and companies may still deactivate a driver whose TLC license is revoked, or suspended for the length of the suspension.

What applies to you today

While the law is blocked:

• Use the company's process. For Uber, that is the in-app Review Center; Uber also published a NYC driver review panel in 2020 (see Uber's NYC appeals panel). For Lyft, use the appeal option in the Lyft Driver app or Lyft's help center.
• TLC's lockout rule still applies. The 72-hour/16-hour rule is a TLC rule, not part of this law, and is in force.
• Keep everything. Save your deactivation message, trip history, pay statements and any evidence now. If the law later takes effect, these records will matter, especially for the 7-year lookback.
• Plan for income. See paid sick leave and unemployment benefits for app drivers.

Step-by-step help is in deactivated by Uber or Lyft: what to do next. For who enforces what, see does TLC handle Uber deactivations. This page is general information about the law's text, not legal advice.