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Uber Technologies Inc. has filed a lawsuit against the city of Seattle, alleging that the city's new App-Based Worker Deactivation Rights Ordinance, which is set to take effect on January 1, 2025, poses serious constitutional issues. Uber claims the ordinance compels the company to express views inconsistent with its approach to privacy and safety, violating fundamental constitutional protections.

In a complaint filed in the U.S. District Court for the Western District of Washington on Wednesday, Uber argued that the ordinance forces the company to adopt the city's perspective, even when that perspective could damage Uber’s reputation and operations. The company asserts that by enforcing the ordinance, Seattle would require Uber to publicly align with the city’s policies, which might suggest to the public that Uber is not fully committed to providing high-quality services, privacy, or safety for its workers and customers.

Uber’s complaint describes the city’s actions as unconstitutional, alleging that the ordinance imposes a regime of compelled speech, forced association, and an indecipherable government mandate. The company also argues that the ordinance demands sweeping disclosures of sensitive business information and interferes with its contractual rights with workers and clients. According to Uber, Seattle’s attempts to regulate worker deactivations threaten to harm both its business operations and its relationships with app-based workers who do not meet the company’s standards.

The App-Based Worker Deactivation Rights Ordinance requires companies like Uber, which employ 250 or more app-based workers worldwide, to provide workers with a detailed explanation whenever they are deactivated from the platform. The ordinance mandates that companies not only disclose the reasons for deactivation but also provide evidence supporting that decision and allow workers to challenge it through an appeals process. The city of Seattle’s Office of Labor Standards (OLS) will have the authority to enforce the ordinance, though the agency will be limited to investigating whether companies provided the proper notices and followed the correct procedures until May 31, 2027.

The ordinance, which also includes a private right of action for workers, has caused significant concern for Uber. The company argues that the city's vague standards and unclear guidance put it in a difficult position, potentially forcing it to reinstate workers that it would have otherwise deactivated for legitimate reasons, such as safety or reliability concerns. Uber contends that the ordinance's provisions could harm its ability to maintain high service standards and keep customers safe.