S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7376
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 25, 2025
                                ___________
 
 Introduced  by  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:
 
   Section 1. The general business law is amended by adding a new section
 391-x to read as follows:
   § 391-X. THIRD-PARTY FOOD DELIVERY GRATUITY CHARGE. 1. AS USED IN THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "GRATUITY CHARGE" MEANS ANY PAYMENT MADE IN THE PROCESS OF PLACING
 AN  ONLINE  ORDER  THAT  IS INTENDED FOR DIRECT TRANSFER TO THE DELIVERY
 WORKER RATHER THAN TO THE THIRD-PARTY FOOD DELIVERY SERVICE.
   (B) "ONLINE ORDER" MEANS ANY ORDER PLACED BY  A  CUSTOMER  THROUGH  OR
 WITH  THE ASSISTANCE OF A PLATFORM PROVIDED BY A THIRD-PARTY FOOD DELIV-
 ERY SERVICE, INCLUDING A TELEPHONE ORDER.
   (C) "THIRD-PARTY FOOD DELIVERY  SERVICE"  MEANS  ANY  WEBSITE,  MOBILE
 APPLICATION  OR  OTHER  INTERNET SERVICE THAT OFFERS OR ARRANGES FOR THE
 SALE OF FOOD AND BEVERAGES PREPARED BY, AND  THE  SAME-DAY  DELIVERY  OR
 SAME-DAY  PICKUP  OF  FOOD AND BEVERAGES FROM, NO FEWER THAN TWENTY FOOD
 SERVICE ESTABLISHMENTS LOCATED IN THE STATE THAT ARE OWNED AND  OPERATED
 BY DIFFERENT PERSONS.
   (D)  "DELIVERY  WORKER"  MEANS  ANY INDIVIDUAL HIRED TO FULFILL ONLINE
 ORDERS PLACED WITH A THIRD-PARTY FOOD DELIVERY SERVICE.
   2. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY:
   (A) ALL THIRD-PARTY FOOD DELIVERY SERVICES SHALL OFFER THE  OPTION  OF
 CHARGING A GRATUITY CHARGE AT THE SAME POINT IN THE ONLINE ORDER PROCESS
 WHEN THE UNDERLYING ORDER IS PLACED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07381-01-5
 A. 7376                             2
 
              

   (B)  NO  THIRD-PARTY  FOOD  DELIVERY  SERVICE SHALL REDUCE THE COMPEN-
 SATION, INCLUDING BUT NOT LIMITED TO, ANY TIP OR GRATUITY, PAID  TO  ANY
 WORKER, AS A RESULT OF COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
   3. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
 MAY  BE  MADE  BY  THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE
 STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION TO ISSUE  AN
 INJUNCTION TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATION; AND
 IF  IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE THAT THE
 DEFENDANT HAS, IN FACT, VIOLATED THIS  SECTION,  AN  INJUNCTION  MAY  BE
 ISSUED  BY  SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER
 VIOLATION, WITHOUT REQUIRING PROOF THAT ANY PERSON HAS,  IN  FACT,  BEEN
 INJURED  OR  DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT MAY MAKE
 ALLOWANCES TO THE ATTORNEY GENERAL AND DIRECT RESTITUTION OF  AN  AMOUNT
 NOT  TO EXCEED THE AMOUNT OF FEES COLLECTED IN VIOLATION OF THIS SECTION
 BY A THIRD-PARTY FOOD DELIVERY SERVICE, ATTORNEYS' FEES, AND SUCH  OTHER
 REMEDIES  AS  THE  COURT  MAY DEEM APPROPRIATE. WHENEVER THE COURT SHALL
 DETERMINE THAT A VIOLATION OF THIS SECTION HAS OCCURRED, THE  COURT  MAY
 IMPOSE  A  CIVIL  PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR EACH
 VIOLATION. EACH DAY A VIOLATION OF THIS SECTION IS  CONTINUED  AND  EACH
 FOOD  SERVICE  ESTABLISHMENT  CHARGED A FEE IN VIOLATION OF THIS SECTION
 SHALL CONSTITUTE A SEPARATE  VIOLATION.  IN  CONNECTION  WITH  ANY  SUCH
 PROPOSED  APPLICATION  THE  ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF
 AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN
 ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   4. THIS SECTION SHALL NOT ANNUL, ALTER, IMPAIR  OR  AFFECT  THE  LAWS,
 ORDINANCES,  REGULATIONS OR RULES OF LOCAL GOVERNMENTS THAT HAVE ADOPTED
 OR AMENDED LOCAL LAWS, ORDINANCES, REGULATIONS OR RULES NOT INCONSISTENT
 WITH THIS SECTION, INCLUDING WITHOUT LIMITATION CITIES WITH A POPULATION
 OF ONE MILLION OR MORE, WHILE SUCH LOCAL LAWS,  ORDINANCES,  REGULATIONS
 OR RULES REMAIN IN EFFECT.
   § 2. This act shall take effect immediately.