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What is NYC AC § 20-1284?

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This section outlines the conditions under which deactivations of high-volume for-hire vehicle drivers may be justified based on bona fide economic reasons. It mandates the use of business records to support such claims and establishes a seniority-based system for reinstatement. Applies to high-volume for-hire vehicle services and their drivers.

General informational summary. Not legal advice for your situation. Consult an attorney before acting on any specific matter.

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§ 20-1284 Bona fide economic reasons.

AC § 20-1284

a. A deactivation, including a prior deactivation, shall not be considered based on a bona fide economic reason unless supported by a high-volume for-hire vehicle service’s business records demonstrating that such deactivation is in response to: (i) a proportionate reduction in volume of sales or profit within the fiscal quarter prior to the issuance of a notice of layoff required by subdivision d of section 20-1282; or (ii) a high-volume for-hire vehicle service discontinuing its driving services in the city. b.

1.Deactivations of high volume for-hire vehicle drivers based on bona fide economic reason shall be done in reverse order of seniority, so that high volume for-hire vehicle drivers with the greatest seniority shall be retained the longest and reinstated or restored access to the driver platform first.

2.A high-volume for-hire vehicle service shall make reasonable efforts to offer reinstatement or restoration of access to such high-volume for-hire vehicle service’s driver platform to any high-volume for-hire vehicle driver deactivated by such high-volume for-hire vehicle service based on a bona fide economic reason within the previous 3 years, if any, before such high-volume for-hire vehicle service may provide any other new high-volume for-hire vehicle driver access to such driver platform.

3.This subdivision shall apply only to deactivations that occur on or after the effective date of the local law that added this section. (L.L. 2026/052, 1/29/2026, eff. 7/28/2026) Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2026/052.

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