An article published by The National Law Journal, “9th Circuit Rejects Uber’s Bid to Block Deactivation Protections for App-Based Workers,” reports that the U.S. Court of Appeals for the Ninth Circuit rejected a challenge brought by Uber and Instacart seeking to block Seattle’s App-Based Worker Deactivation Rights Ordinance, a law aimed at limiting arbitrary removal of gig workers from digital platforms.
The Seattle ordinance requires companies to provide workers with written policies explaining the circumstances under which accounts may be suspended or deactivated and prohibits certain removals based solely on customer ratings or other opaque metrics. The companies argued that the ordinance violated their First Amendment rights by compelling speech and that it was unconstitutionally vague.
Both the federal district court and the Ninth Circuit rejected those arguments. As reported by the National Law Journal, the appellate court held that the ordinance primarily regulates business conduct—specifically the unwarranted deactivation of app-based workers—rather than protected speech, and therefore the law could remain in effect while the case proceeds.
The dispute reflects the broader legal evolution surrounding the gig economy. As platform-based work expands, cities and states have begun adopting measures addressing issues such as sudden “deactivation,” which can effectively eliminate a worker’s access to income without notice or explanation.
From a legal and governance perspective, the decision underscores the increasing regulatory scrutiny facing technology platforms that manage workers through digital systems. Policies governing worker discipline, performance metrics, and account suspension—once treated as purely internal operational matters—are increasingly becoming the subject of statutory protections and litigation.
The broader takeaway is that companies operating platform-based workforce models should ensure that their deactivation and discipline policies are transparent, consistently applied, and aligned with evolving regulatory frameworks governing gig-economy labor practices.
Outside Legal Counsel LLP advises companies, executives, and boards on employment-law compliance, platform governance, gig-economy regulatory issues, and litigation risk arising from evolving workforce models. Contact us today.
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