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The New York City Council has passed a set of six bills that together regulate nearly every aspect of the relationship between third-party food delivery services and their delivery people in New York City. The bills, passed on September 23, 2021 (and explained in more detail below) are expected to be enacted by Mayor Bill de Blasio in the coming days.
Restaurants will be directly affected by a provision in one of the bills that states that all third-party food delivery services must amend contracts with restaurants to ensure bathrooms are made available to delivery people, except exception.
Prohibition of salary payment fees
Invoice 2296-2021 Prohibits third-party food delivery services from charging delivery people a fee to obtain their wages and tips by a specific payment method, such as direct deposit or check. In addition, the bill requires third party food delivery services to pay their delivery people on a weekly basis.
Disclosure of gratuity policies
Invoice 1846-2020 prohibits third-party food delivery services from soliciting a tip from a customer unless it also discloses (i) the proportion or fixed amount of each tip that will be distributed to the food delivery person, (ii) the manner in which the tip is provided to the worker (immediately or not), and (iii) the method by which the tip will be provided (in cash or otherwise).
The law also requires that, for each transaction, a food delivery person is informed:
- how much the customer paid as a tip
- if the customer paid an additional tip after delivery
- whether the customer has decided to remove the tip, and
- the reason for the withdrawal if such a reason is provided
In the event of a change or payment of a tip, the third-party delivery service will notify the food delivery person and credit the tip to the individual’s account. The third-party delivery service must also disclose to the courier the total amount of compensation and the total amount of tips earned by the courier no later than the day after the day they were earned.
Third party food delivery services must maintain records for at least three years demonstrating compliance with the above requirements as a condition of maintaining a business license in New York City.
Minimum payments per trip
Invoice 2294-2021 establishes the mechanism by which the City will determine the minimum amount earned by a food delivery person per trip, excluding tips.
Under this bill, the Department of Consumer and Worker Protection (the Department) is responsible for analyzing the working conditions of food deliverers, including:
- the salary they receive and the methods by which the salary is determined
- total income generally earned
- expenses of these workers
- the equipment necessary for the performance of their work
- the hours of these workers
- average mileage per delivery trip
- travel mode
- security conditions
The bill gives the ministry the power to request or issue subpoenas for the production of data, documents and other information from a third-party food delivery service regarding food delivery workers. This information may include the hours that workers are available to work for the third-party service, how travel is offered or allocated to workers, compensation workers receive from the service, tips workers receive, agreements or policies covering workers, contact details of workers, information relating to the setting of prices paid by catering establishments and consumers, and any other information deemed relevant by the Ministry.
Based on its analysis, the Ministère must, no later than January 1, 2023, establish a method to determine the minimum payments for a food delivery person. The amount a food delivery person will earn per trip will be based on this calculation. Third party food delivery services are prohibited from taking tip credit on wages they owe to food deliverers.
As of February 1, 2024 (and no later than February 1 of each year thereafter), the Ministère will announce any update to the calculation of the minimum payment. The update, if any, would then take effect on April 1 of the same year.
Geographical limits of delivery
Invoice 2289-2021 deals with general provisions relating to the working conditions of workers and requires third party food delivery services to allow workers to set limits on distance and delivery routes.
Third-party food delivery services must advise the driver, prior to travel, of the address where food, drink or other goods are to be picked up, the estimated time and distance per trip, if the customer has provided a tip and compensation for the trip (excluding tips).
Delivery people should also be able to (i) set the maximum distance per route they will travel and (ii) refuse routes that include bridges or tunnels, both of which can be changed at any time by the worker and at its sole discretion. discretion. Third-party food delivery services are prohibited from retaliating against a worker for the parameters chosen in the form of, inter alia, denial of work opportunities, reduction of hours or pay or a reduction in the worker’s public or internal âapprovalâ rating.
Each third-party food delivery service must also provide its workers with a notice of rights under the law. This rights notice will be created and published by the Ministry.
For each violation, a third-party food delivery service will be liable to a fine of $ 500 for the first violation and, for subsequent violations occurring within two years of any previous violation, up to $ 750 for the second violation and up to $ 1,000 for each successive violation. Food deliverers will also have the right to seek compensatory damages in actions against a third party food delivery service for any violation of the law.
Insulated food bags to provide to delivery people
Invoice 2288-2021 requires third-party food delivery services to provide, at their expense, insulated food bags to food deliverers who have made six or more deliveries for the service. Previously, a third-party food delivery service could require its employees to provide insulated food bags at their own expense.
The bill gives the department the power to deny, suspend or revoke the license of a third-party delivery service to operate in New York City if the service is found to have violated those provisions two or more times in the course of for a period of two years.
Access to toilets for delivery people
Invoice 2298-2021 states that a third-party food delivery service must include in its contracts with restaurants a provision that requires the restaurant to make its washroom available to third-party food delivery people as long as the delivery person seeks access to the facilities while picking up an order for delivery. However, the bill clarifies that a restaurant is not required to do so if (i) access to the toilet would require a worker to pass through the kitchen, food preparation area, storage area or area. washing utensils or (ii) access to the facility âwould create an obvious risk to the health and safety of the food delivery person or establishmentâ.
Although the bill does not define the term ârisk to health and safetyâ, the ministry is responsible for making rules and enforcing measures relating to toilets.
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