Bill Text: NY A10595 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires third-party food delivery services to provide the ability to include a gratuity at the same point in the online order process when the underlying order is placed.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced) 2024-06-20 - referred to consumer affairs and protection [A10595 Detail]

Download: New_York-2023-A10595-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10595

                   IN ASSEMBLY

                                      June 20, 2024
                                       ___________

        Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Mitaynes,
          Forrest, Mamdani, Shrestha, Gallagher) -- read once  and  referred  to
          the Committee on Consumer Affairs and Protection

        AN  ACT  to  amend  the  general business law, in relation to gratuities
          received by third-party food delivery workers

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  391-w to read as follows:
     3    § 391-w. Third-party food delivery gratuity charge. 1. As used in this
     4  section, the following terms shall have the following meanings:
     5    (a) "Gratuity charge" means any payment made in the process of placing
     6  an  online  order  that  is intended for direct transfer to the delivery
     7  worker rather than to the third-party food delivery service.
     8    (b) "Online order" means any order placed by  a  customer  through  or
     9  with  the assistance of a platform provided by a third-party food deliv-
    10  ery service, including a telephone order.
    11    (c) "Third-party food delivery  service"  means  any  website,  mobile
    12  application  or  other  internet service that offers or arranges for the
    13  sale of food and beverages prepared by, and  the  same-day  delivery  or
    14  same-day  pickup  of  food and beverages from, no fewer than twenty food
    15  service establishments located in the state that are owned and  operated
    16  by different persons.
    17    (d)  "Delivery  worker"  means  any individual hired to fulfill online
    18  orders placed with a third-party food delivery service.
    19    2. Notwithstanding any other law, rule or regulation to the contrary:
    20    (a) All third-party food delivery services shall offer the  option  of
    21  charging a gratuity charge at the same point in the online order process
    22  when the underlying order is placed.
    23    (b)  No  third-party  food  delivery  service shall reduce the compen-
    24  sation, including but not limited to, any tip or gratuity, paid  to  any
    25  worker, as a result of compliance with the provisions of this section.
    26    3. Whenever there shall be a violation of this section, an application
    27  may  be  made  by  the attorney general in the name of the people of the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14244-01-4
        A. 10595                            2

     1  state of New York to a court or justice having jurisdiction to issue  an
     2  injunction to enjoin and restrain the continuance of such violation; and
     3  if  it shall appear to the satisfaction of the court or justice that the
     4  defendant  has,  in  fact,  violated  this section, an injunction may be
     5  issued by such court or justice, enjoining and restraining  any  further
     6  violation,  without  requiring  proof that any person has, in fact, been
     7  injured or damaged thereby. In any such proceeding, the court  may  make
     8  allowances  to  the attorney general and direct restitution of an amount
     9  not to exceed the amount of fees collected in violation of this  section
    10  by  a third-party food delivery service, attorneys' fees, and such other
    11  remedies as the court may deem appropriate.  Whenever  the  court  shall
    12  determine  that  a violation of this section has occurred, the court may
    13  impose a civil penalty of not more than one thousand  dollars  for  each
    14  violation.  Each  day  a violation of this section is continued and each
    15  food service establishment charged a fee in violation  of  this  section
    16  shall  constitute  a  separate  violation.  In  connection with any such
    17  proposed application the attorney general is authorized  to  take  proof
    18  and make a determination of the relevant facts and to issue subpoenas in
    19  accordance with the civil practice law and rules.
    20    4.  This  section  shall  not annul, alter, impair or affect the laws,
    21  ordinances, regulations or rules of local governments that have  adopted
    22  or amended local laws, ordinances, regulations or rules not inconsistent
    23  with this section, including without limitation cities with a population
    24  of  one  million or more, while such local laws, ordinances, regulations
    25  or rules remain in effect.
    26    § 2. This act shall take effect immediately.