A U.S. federal appeals court has upheld the legality of Seattle’s rules protecting the rights of drivers and couriers who work through platforms like Uber and Instacart. The law, passed in 2023, was designed to regulate the so-called gig economy and to prevent unfair deactivations. The court rejected a lawsuit by companies that argued the new rules violated their constitutional rights and ruled that the law remains in effect.
Under the new legislation, companies are required to develop a clear and “reasonable” policy explaining why and under what conditions a courier can be deactivated from the platform. The law prohibits terminating workers for reasons such as low hours worked, frequent declines of orders, or past driving-record issues, unless they are directly related to safety. In addition, companies must provide advance notice of deactivation and offer a chance to appeal. This measure is part of a broader package of city initiatives aimed at improving working conditions in the short-term work sector. Seattle has previously implemented a minimum pay for delivery workers, protected their right to keep full tips and bonuses without deductions, and launched programs providing benefits to such workers, including paid sick leave.
Judges unanimously rejected the companies’ argument that the requirement to write a “reasonable” policy violates their free speech rights (the First Amendment). The court held that the law is a permissible economic regulation and does not restrict the companies’ right to criticize it. Seattle’s city attorney welcomed the decision, emphasizing that every worker deserves clarity and fairness from the companies that profit from their labor.
A spokesperson for Instacart expressed disappointment with the ruling, calling Seattle’s rules “burdensome” and harmful to both couriers and customers. Notably, the political context has shifted: since 2024 the majority on the Seattle City Council that originally passed the law has changed. After the 2023 elections, new members joined the council, resulting in a more moderate composition compared with the previous progressive majority. This new council pays less attention to active regulation of platform employment, shifting focus toward finding a balance between protecting workers and business interests, which may slow the adoption of further initiatives to expand gig-economy worker rights.
Based on: Federal court upholds Seattle’s delivery driver rights law