The rapid growth of the gig economy has prompted U.S. cities to consider how existing labor protections apply to app-based workers who can be removed from a platform, or “deactivated,” without notice or explanation. (Helen McFarland, Seyfarth Shaw LLP). Seattle moved to address that gap directly. Id. In August 2023, the Seattle City Council passed Ordinance 126878, the App-Based Worker Deactivation Rights Ordinance (the “Ordinance”), which took effect on January 1, 2025. (Seattle City Council, Ordinance 126878). Uber Technologies, Inc. (“Uber”) and Maplebear, Inc. d/b/a Instacart (“Instacart”), sued to block the Ordinance on First Amendment grounds, but on March 4, 2026, a divided Ninth Circuit panel rejected the companies’ appeal of a denied preliminary injunction. (Rachel Riley, Law360). This post examines what the Ordinance requires, the companies’ constitutional arguments, and the implications of this decision for Seattle and gig economy regulation nationwide.

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