Uber, Instacart Lose Appeal to Block Seattle Gig Worker Law

Federal appeals court rules Seattle law regulating termination protections for app-based workers is constitutional.

Published on Mar. 4, 2026

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Uber Technologies Inc. and Instacart failed to convince a federal appeals court that a Seattle law establishing standards for termination protections for app-based workers unconstitutionally regulates their speech. The Ninth Circuit Court of Appeals ruled that the Seattle law regulates conduct, not speech, and even if it did regulate speech, it would be commercial speech subject to lower scrutiny.

Why it matters

This ruling is a significant victory for gig workers' rights in Seattle, as the law aims to provide more job security and protections for app-based delivery and rideshare drivers. The decision could also set a precedent for other cities looking to implement similar regulations on the gig economy.

The details

The Seattle courier deactivation law requires companies like Uber and Instacart to provide workers with a reason for termination and an appeals process. Uber and Instacart argued the law unconstitutionally regulates their speech by dictating how they communicate with workers. However, the appeals court found the law focuses on regulating the conduct of termination, not the companies' speech.

  • The Seattle law was passed in 2021.
  • Uber and Instacart filed their appeal in 2025.
  • The Ninth Circuit Court of Appeals ruled on the case on March 4, 2026.

The players

Uber Technologies Inc.

A multinational ride-hailing and food delivery company.

Instacart

An American grocery delivery and pick-up service.

Seattle

The largest city in the state of Washington, which passed a law establishing standards for termination protections for app-based workers.

Ninth Circuit Court of Appeals

The federal appeals court that ruled on the case.

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What they’re saying

“The ordinance's goal is to keep app-based workers employed and ensure they are not arbitrarily deactivated from the platforms on which they rely for their livelihoods.”

— Judge Richard R. Clifton, Judge, Ninth Circuit Court of Appeals

What’s next

The ruling is expected to be appealed to the U.S. Supreme Court, which will determine if it will take up the case.

The takeaway

This decision upholds Seattle's efforts to provide more job security and protections for gig workers, setting an important precedent for other cities looking to regulate the practices of app-based companies like Uber and Instacart.