The New York City Council (USA) will vote tomorrow [December 18, 2025] on Intro 1332-2025, known as the “Just Cause” Act. Its purpose is to protect individuals working as Vendors for Platforms from unfair and sudden account deactivation, which is tantamount to dismissal.
The Act prohibits Platforms from permanently suspending Vendors without just cause or compelling economic reasons. In the event of an employee’s violation of the rules, the Platform must apply graduated penalties, and full account deactivation will only be permitted in cases of egregious misconduct. Platforms will be required to provide the employee with written notice of the deactivation within 72 hours of the decision, along with a detailed and detailed explanation. This type of dismissal protection begins to apply to any employee who completes a 30-day probationary period working for a given Platform.
If deactivation is to occur for economic reasons (e.g., a significant reduction in order volume), the Platform will be required to provide 120 days’ notice of the planned deactivation. Deactivation decisions must also be non-arbitrary and must take into account economic criteria and length of service.
The new law will also introduce an appeals mechanism. Unjustly dismissed suppliers will be able to pursue their rights through the city’s Department of Consumer and Employee Protection, potentially obtaining reinstatement and compensation for lost wages.
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