S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4927
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 14, 2025
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer 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.
   (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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07381-01-5
              

 S. 4927                             2
 
   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.