New York Assembly Bill A07376

New York 2025-2026 Regular Session

• Introduced: 3/25/25
• Refer: 3/25/25
• Refer: 1/7/26
• Report Pass: 4/21/26
• Refer: 4/21/26
• Report Pass: 5/5/26
• Engrossed: 5/11/26
• Refer: 5/11/26

Caption

Requires third-party food delivery services and third-party grocery delivery services to provide the ability to include a gratuity at the same point in the online order process when the underlying order is placed; provides that customers shall not be required to pay a gratuity; provides that third-party food delivery services and third-party grocery delivery services shall not reduce the compensation of any worker as a result of gratuities; establishes penalties for violations of such provisions.

Impact

The introduction of A07376 is poised to have significant implications for the relationship between consumers, delivery services, and workers. Notably, the bill specifies that customers shall not be required to pay gratuities, thus protecting them from mandatory tipping practices. Furthermore, the bill includes a provision that prevents third-party delivery services from reducing the compensation of delivery workers based on gratuity payments. This aims to ensure that workers are fairly compensated regardless of whether or not a gratuity is provided by the customer.

Summary

Bill A07376 is designed to amend the General Business Law concerning gratuity payments for orders placed through third-party food delivery services. The bill mandates that all third-party food delivery platforms must offer customers the option to include a gratuity at the same moment they place their online orders. This provision aims to make the gratuity process transparent and voluntary, ensuring that the customer understands that this gratuity is intended as a tip for the worker delivering the goods. The language used in the bill emphasizes the need for clarity in communicating this option to consumers.

Conclusion

Overall, A07376 seeks to enhance consumer rights and safeguard worker compensation in the context of the growing food delivery industry. As the bill progresses through the legislature, discussions will likely continue to evolve, particularly regarding the regulation of gratuities and potential implications for both consumers and service workers.

Contention

There are potential points of contention regarding the implementation and enforcement of this bill, particularly in terms of how gratuities and worker compensation will be affected in practice. Some stakeholders may argue about the adequacy of penalties for violations of these provisions, as the bill establishes civil penalties of up to one thousand dollars for each infraction against the required practices outlined in the legislation. Additionally, local governments may raise concerns about how this state-level legislation interacts with existing local laws regarding worker compensation and consumer protections.