Judge Gregory Woods issued the order Tuesday, siding with the companies’ claims that the legislation unconstitutionally interferes with their existing contracts. The law, which the City Council passed in January over Mayor Eric Adams' veto, would have forced platforms to prove 'egregious misconduct' before cutting off a driver's access to the app.

Under the blocked regulations, companies would have been required to provide 14 days' notice before deactivation and establish a formal reinstatement process. Judge Woods noted that the companies are likely to prevail in court, suggesting that the city failed to demonstrate how the law serves a broad social interest sufficient to justify the impairment of private contracts. The city has yet to comment on the ruling, leaving the future of the protections in limbo.