Uber Sues Seattle Over Ordinance Regulating Worker Deactivation
America ı By Rochdi Rais
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The Seattle Office of Labor Standards had previously announced that the ordinance would go into effect on January 1, 2025, but with limited enforcement authority until May 31, 2027. The city stated that during this time period, it would investigate specific issues such as whether companies provided a notice of rights, a deactivation policy, evidence supporting the deactivation, and a process for challenging the deactivation. However, the office will not have the authority to investigate whether a company deactivated a worker for a legitimate reason until June 1, 2027.
OLS Director Steven Marchese commented when the ordinance was announced that the law would give app-based workers the right to know why they were deactivated, what information the company used to make the decision, and the process for challenging the deactivation. While Uber supports the idea of transparency, the company asserts that the ordinance goes too far, requiring more disclosure than is necessary or reasonable.
Uber's delivery platform connects consumers with independent couriers who deliver meals, groceries, and other goods, and the company maintains that it has every incentive to keep couriers on the platform. However, Uber argues that the ordinance forces the company to adopt a model that may not align with its operational and safety standards. In particular, Uber has expressed concerns about the possibility of keeping workers who do not meet the company’s standards for quality, safety, and reliability, as well as the impact on the company’s privacy policies and protection of sensitive business information.
Uber has been critical of the city’s approach, arguing that Seattle’s handling of the ordinance has been sluggish, offering little guidance and clarity as the implementation date approaches. As the new year approaches, Uber continues to express frustration with the city's lack of answers regarding how the ordinance will affect its operations.
A representative from the city of Seattle did not immediately respond to a request for comment regarding Uber’s lawsuit. The case is currently being represented by Uber’s legal team, which includes Robert J. Maguire and Theo A. Lesczynski of Davis Wright Tremaine LLP, and Stacey Grigsby, David Zionts, Neha Jaganathan, Alexander Cave, and Neema Sahni of Covington & Burling LLP. Seattle is being represented by Jessica L. Goldman of Summit Law Group.
The case is being heard under the title Uber Technologies Inc. et al. v. City of Seattle, case number 2:24-cv-02103, in the U.S. District Court for the Western District of Washington.
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