§ 20-1522 Minimum payment.
AC § 20-1522
a.
1.The department shall study the working conditions for food delivery workers. In conducting such study, the department may coordinate with any other agency, organization, or office that can assist in such study. Such study shall include, at minimum, consideration of the pay food delivery workers receive and the methods by which such pay is determined, the total income food delivery workers earn, the expenses of such workers, the equipment required to perform their work, the hours of such workers, the average mileage of a trip, the mode of travel used by such workers, the safety conditions of such workers, and such other topics as the department deems appropriate. In conducting such study, the department shall not be required to consider the business model or operations of any third-party food delivery service or third-party courier service, any differences between or among the business models or operations of third-party food delivery services and third-party courier services, or the potential impact on any third-party food delivery service or third-party courier service of establishing any minimum payment requirement pursuant to this section.
2.In furtherance of such study, the department may issue orders or subpoenas for the production of data, documents, and other information from a third-party food delivery service or third-party courier service relating to food delivery workers that include, but are not limited to, worker identifiers, information about the times that such workers are available to work for such third-party food delivery service or third-party courier service, the mode of transportation such workers use, how trips are offered or assigned to food delivery workers, the data such service maintains relating to the trips of such workers, the compensation such workers receive from such third-party food delivery service or third-party courier service, any gratuities such workers receive, information relating to both completed and cancelled trips, agreements with or policies covering such workers, contact information of such workers, information relating to the setting of fees paid by food service establishments and consumers, and any other information deemed relevant by the department. In accordance with applicable law and rules and with appropriate notice, a third-party food delivery service or third-party courier service must produce such information to the department in its original format or a machine-readable electronic format as set forth in rules of the department.
3.Based on the results of the study conducted pursuant to paragraph a of this subdivision, and no later than January 1, 2023, the department shall by rule establish a method for determining the minimum payments that must be made to a food delivery worker by a third-party food delivery service or third-party courier service. In establishing such method, the department shall, at minimum, consider the duration and distance of trips, the expenses of operation associated with the typical modes of transportation such workers use, the types of trips, including the number of deliveries made during a trip, the on-call and work hours of food delivery workers, the adequacy of food delivery worker income considered in relation to trip-related expenses, and any other relevant factors, as determined by the department. In establishing such method, the department shall not be required to consider the business model or operations of any third-party food delivery service or third-party courier service, any differences between or among the business models or operations of third-party food delivery services and third-party courier services, or the potential impact on any third-party food delivery service or third-party courier service of establishing such a method.- Any rules promulgated by the department pursuant to this subdivision shall not prevent payments to food delivery workers from being calculated on an hourly or weekly basis, or by any other method, provided that the actual payments made to such workers comply with the minimum payment requirements determined by the department. The department may establish a single method for determining minimum payments to food delivery workers by any third-party food delivery service or third-party courier service. Nothing in this section shall be construed as requiring the department to establish a method for determining minimum payments to a food delivery worker retained by any third-party food delivery service or any third-party courier service that is tailored to the circumstances of a particular service or is different than the method for determining minimum payments to a food delivery worker retained by any other third-party food delivery service or third-party courier service. b.
4.When providing an opportunity to pay a gratuity pursuant to paragraph 3 of this subdivision, a third-party food delivery service or third-party grocery delivery service shall provide a customer with gratuity options that may be set at the discretion of such service, provided that such gratuity options include an option to pay a gratuity that is at least 10 percent of the purchase price and an additional option that allows such customer to manually enter a different amount or percentage of such purchase price.
5.The department may promulgate rules for the implementation of this section, including specifying the form and manner of the opportunity to pay a gratuity pursuant to this section. c. Beginning February 1, 2024 and no later than February 1 of each year thereafter, the department shall announce any update to any minimum payment method established pursuant to this section if it determines an update is warranted or necessary. Any such update shall become effective the following April 1 after it has been announced. If the department determines that an amendment to any minimum payment standard is warranted or necessary, it is hereby authorized to promulgate such amendment by rule. d. The department shall, no later than September 30, 2024, and 2 years thereafter, submit to the council and the mayor a report on any minimum payment standard, any amendment to any such standard, and the effect of any such minimum payment standard on contracted delivery workers and the delivery industry. e. A third-party grocery delivery service shall make payments to grocery delivery workers retained by such service that meet or exceed the minimum pay requirements for food delivery workers established by the department pursuant to subdivision a of this section. The department may by rule establish a method for applying such minimum pay requirements to grocery delivery workers that is tailored to the circumstances of such workers, including variations in the working conditions of such workers as compared to the working conditions of food delivery workers. f. No later than 18 months after the effective date of the local law that added this subdivision, the department shall by rule establish 1 or more methods for determining the minimum payments a delivery service shall make to a contracted delivery worker retained by such service. Any minimum payment determined pursuant to any such method shall include: 1. A labor component, which shall be no less than the minimum wage required pursuant to paragraph a of subdivision 1-a or paragraph a of subdivision 1-b of section 652 of the labor law, or its successor provisions; 2. A benefit component, which shall be no less than an amount equal to the value of benefits required to be provided by employers to employees in the city pursuant to city, state, or federal law, as determined by the department; 3. An expense component, which shall be sufficient to cover ordinary and necessary expenses of a contracted delivery worker, as determined by the department. g. In establishing any method pursuant to subdivision f, the department shall consider factors including, but not limited to, the minimum pay and benefits that are required to be provided by employers to employees in the city pursuant to city, state, or federal law; the pay and benefits received by employees or independent contractors in the city performing work similar to the work performed by contracted delivery workers or working in similar industries as contracted delivery workers; ordinary and necessary expenses of contracted delivery workers; and any other relevant factor, as determined by the department. In establishing such method, the department may, but is not required, to consider variations among the business models or operations of delivery services, including potential impacts on any delivery service of establishing such a method, and variations among the working conditions of contracted delivery workers, including variations in compensation of contracted delivery workers, the total income different contracted delivery workers earn, the expenses of such workers, the equipment used by such workers, the hours of such workers, whether any such worker reports to a designated location prior to commencing work for a delivery service, and such other topics as the department deems appropriate. The department may establish a single method for determining minimum payments to contracted delivery workers by any delivery service, or may establish 1 or more methods for determining minimum payments to such workers by any such service. Any method established pursuant to subdivision f may include individual criteria for determining the minimum payments a delivery service shall make to each contracted delivery worker retained by such service, or aggregate criteria for determining the total amount of minimum payments a delivery service shall make to all contracted delivery workers retained by such delivery service, or both such individual criteria and aggregate criteria. Nothing in this subdivision shall be construed as requiring the department to establish a method for determining minimum payments to a contracted delivery worker retained by a delivery service that is tailored to the circumstances of such service. (L.L. 2021/115, 10/24/2021, eff. 4/22/2022; Am. L.L. 2021/118, 10/24/2021, eff. 4/22/2022; Am. L.L. 2025/107, 8/13/2025, eff. 1/26/2026; Am. L.L. 2025/108, 8/13/2025, eff. 1/26/2026; Am. L.L. 2025/123, 9/10/2025, eff. 9/10/2025 and 1/26/2026; Am. L.L. 2025/124, 9/10/2025, eff. 1/26/2026) Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2021/118, L.L. 2025/123, and L.L. 2025/124.
