BILL NUMBER: S9482
SPONSOR: RAMOS
 
TITLE OF BILL:
An act to amend the general business law, in relation to gratuities
received by third-party food delivery workers
 
PURPOSE:
The purpose of this bill is to mandate that all third-party food deliv-
ery services include the option to include gratuity payments while the
delivery order is placed.
 
SUMMARY OF PROVISIONS:
Section 1 adds new section 391-w of the general business law, which
establishes that third-party food delivery services shall provide an
option to include gratuity payments at the same point of the ordering
process when the underlying order is placed, and sets terms for penal-
ties for violations of this section and enforcement thereof.
Section 2 sets forth the effective date.
 
JUSTIFICATION:
Third-party food delivery services have made gratuity payment more
difficult in response to recent New York City minimum wage reforms.
While it is illegal for third-party food delivery services to block
payment of gratuities to workers, some have altered their platforms'
gratuity payment procedures so as to occur after the order has been
assigned to a delivery worker. This drastically undercuts both the total
amount of gratuities paid and the workers' agency in choosing the most
lucrative recent orders in the local area.
 
FISCAL IMPACT:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.