NYC Administrative Code

§ 20-563.2 — Issuance of license and certain restrictions on third-party food delivery service conduct.

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What is NYC AC § 20-563.2?

Quick Answer

This section outlines the licensing requirements for third-party food delivery services and imposes restrictions on their operations, particularly regarding gratuity solicitation and distribution. The statute mandates transparency in gratuity handling and requires notification to delivery workers about their earnings. Applies to third-party food delivery services operating in New York City.

General informational summary. Not legal advice for your situation. Consult an attorney before acting on any specific matter.

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§ 20-563.2 Issuance of license and certain restrictions on third-party food delivery service conduct.

AC § 20-563.2

a. A license to operate a third-party food delivery service shall be granted in accordance with the provisions of this subchapter and any rules promulgated by the commissioner thereunder. b. Restrictions on third-party food delivery service operations.

1.It shall be unlawful for a third-party food delivery service to solicit a gratuity for a food delivery worker hired, retained or engaged by such third-party food delivery service from a customer in connection with an online order unless such third-party food delivery service discloses, in plain language and in a conspicuous manner, the following information before or at the same time as such gratuity is solicited: (i) The proportion or fixed amount of each gratuity that is distributed to a food delivery worker who delivers the goods purchased; and (ii) How gratuities are distributed to a food delivery worker, including whether such gratuities are distributed immediately or otherwise, and whether such gratuities are distributed in cash or otherwise.

2.For each transaction, a food delivery worker hired, retained or engaged by a third-party food delivery service shall be notified of how much the customer paid as gratuity, if such customer paid additional gratuity, and if such customer decided to remove the gratuity and the reason for such removal, if such a reason is provided. Upon any change or payment of gratuity, a third-party delivery service shall notify such food delivery worker and credit such gratuity to such worker's account.

3.A third-party food delivery service shall disclose to a food delivery worker hired, retained or engaged by such third-party food delivery service, the aggregate amount of compensation and aggregate amount of gratuities earned by such food delivery worker on the day after such compensation and gratuities were earned. (L.L. 2021/100, 9/26/2021, eff. 1/24/2022; Am. L.L. 2021/110, 10/24/2021, eff. 1/24/2022)

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