New City laws require many food delivery apps to have a license and establish rights for consumers, delivery workers, and restaurants.
Minimum Pay Rate
DECEMBER 2022 UPDATE: The Department of Consumer and Worker Protection (DCWP) is currently reviewing the substantial volume of thoughtful comments that it received about the proposed minimum pay rate for app-based restaurant delivery workers and expects to issue a final rule by February 15, 2023. Learn more about the proposed minimum pay rate.
In addition to requiring a license for Third-Party Food Delivery Service, new laws:
Set caps on the fees that you can charge food service establishments ("restaurants").
Delivery fees are capped at 15% of the purchase price of each online order;
Transaction fees are capped at 3% of the purchase prices of each online order, with limited exceptions; and
All other fees are capped at a total of 5% of each online order.
Require that, prior to or at the time of soliciting a gratuity, you disclose to consumers the proportion or fixed amount of each gratuity that you distribute to a delivery worker and how and when you pay that gratuity.
Require you to disclose to your delivery workers how much each consumer paid as a gratuity, whether a consumer paid additional gratuity or removed a gratuity (and the reason why a gratuity was removed, if known), and the total amount of compensation and gratuities earned by the delivery worker the previous day.
Prohibit you from charging restaurants for telephone orders that do not result in a transaction.
Require that if you list or link to a phone number for a restaurant, you must include in such listing or link the direct telephone number for the restaurant. If you provide another telephone number, you must prominently and conspicuously identify each telephone number as either a third-party telephone number or a direct telephone number. You must also disclose any fee for the use of each telephone number, whether imposed on the restaurant or the caller.
Require you to have a written agreement with each restaurant listed on your website, mobile application or other platform.
Starting January 24, 2022, any written agreement you enter must contain a provision requiring the food service establishment to allow bathroom access to delivery workers, with limited exceptions for health and safety reasons; and
The written agreement cannot compel a restaurant to indemnify you or any independent contractor or agent acting on your behalf for any damage or harm occurring after the food has left the restaurant.
Prohibit unauthorized listings on your website, mobile application or other platform without a written agreement between you and the restaurant.
Require you to provide restaurants with customer data at the restaurants’ request unless the customer opts out. Customer data includes only their name, telephone number, e-mail address, the delivery address of the online order, and the contents of the online order.
Require you to maintain and make certain records available to DCWP upon request, including:
A roster of all food service establishments you list or have listed on your website, mobile application, or other third-party food delivery platform;
All written agreements with a food service establishment;
Records listing itemized fees you have charged to each food service establishment with which you maintain an agreement;
Records sufficient to demonstrate compliance with the compensation and gratuity disclosure requirements; and
Records sufficient to document all customer requests not to share the customer’s data with a food service establishment.
Requirements Effective April 22, 2022
Allow food delivery workers to set limitations on distances they will travel from restaurants and which bridges or tunnels they are unwilling to use.
Provide upfront disclosure to food delivery worker about route, pay, and gratuities.
Pay food delivery workers at least once a week.
Not impose any charges or forms of payment that include any fees.
Provide a free insulated delivery bag to a food delivery worker after 6 deliveries.
Maintain and make records available to DCWP relating to the requirements that take effect April 22, 2022, including but not limited to:
Food delivery worker contact information;
Records of all compensation (including gratuity) offered and paid out to food delivery workers;
Records of the distance and route limitations set by food delivery workers and the up-front disclosures for every trip offer; and
Records reflecting every suspension or deactivation of a worker
Requirements Effective January 1, 2023
NYC will set a minimum pay rate for workers. The rate will be separate from any tips workers receive. NYC will update the rate over time.
This page is provided for informational purposes only, is not exhaustive, and does not constitute legal advice. New York City businesses must comply with all relevant federal, State, and City laws and rules. Businesses are responsible for knowing and complying with current regulations that affect their business.