The Council will also vote to increase protections for domestic workers under human rights law

City Hall, NY – Continuing the vital work of protecting New York City’s small businesses, today the Council will vote to extend measures passed earlier in the pandemic to help keep these businesses afloat. The first of these bills would extend the laws that already prohibit third-party delivery platforms from charging restaurants more than 15% per order for delivery and more than 5% per order for all other fees, pushing the end date of these caps until February 17, 2022. The bill would also clarify which transaction fees are included in and exempted from these limits.

Relatedly, the Council will vote on a bill to extend legislation that prohibits third-party delivery platforms from charging restaurants for telephone orders that did not result in a transaction, ensuring the protections remain in place until February 17, 2022, as well.

Other small business legislation includes a bill that would require third-party delivery platforms to share information related to delivery orders placed through their platform with restaurants that request it, including customers’ names, phone numbers, e-mail addresses, delivery addresses, and contents of the order. Customers would be able to opt out of their information being shared, and the bill would prohibit the restaurants from selling, renting or disclosing customer information without their express consent. Another bill would require third-party delivery platforms to identify phone numbers they have created for restaurants, which may incur a fee when used and are not the restaurants’ actual direct phone number.

Last of the small business bills is in relation to prohibiting third-party delivery platforms from listing restaurants on their app or website without a written agreement. The bill would also prohibit the delivery platforms from requiring the restaurants to compensate them or their independent contractors or agents for damages that occur after food or beverages leave the restaurant.

The Council will also vote on a bill that would extend the employment protections of the Human Rights Law (HRL) to all domestic workers regardless of their employers’ staff size. Currently, employment protections under the HRL do not apply to employers with fewer than four workers, which leaves out most domestic workers employed at an employers’ residence for purposes including caretaking and housekeeping, for example. The protections in this bill would prohibit several forms of discrimination and would also ensure that domestic workers are entitled to reasonable accommodations for pregnancy, childbirth and related conditions such as lactation accommodations, upon request.

Another bill coming up for a vote would require City human services contractors and certain subcontractors to enter into labor peace agreements with labor organizations seeking to represent their employees under City human services contracts. Employers would agree to maintain a neutral posture at union efforts to organize employees by agreeing not to hinder or disrupt the organizing process, while the union in turn agrees to not go on strike or otherwise stop work. This would benefit both workers and employers alike, as well as recipients of city services, by ensuring service delivery will continue uninterrupted. Human service contracts involved in this bill would include but not be limited to day care, foster care, home care, health or medical services, housing and shelter assistance, preventive services, youth services, the operation of senior centers, employment training and assistance, vocational and educational programs, legal services and recreation programs.

Finally, the Council will vote on finance measures, including two Article XI property tax exemptions to preserve 304 units of affordable housing.

THIRD-PARTY DELIVERY APPS

Int. No. 2333-A, sponsored by Council Member Mark Gjonaj, will prohibit third-party delivery platforms from listing restaurants on their application or website and making deliveries from those restaurants, without a written agreement granting permission to do so. It would also prohibit the delivery platforms from requiring the restaurants, in these written agreements, to indemnify the platform or their independent contractors or agents for damage that occurs after food or beverages leave the restaurant. Violations of this bill would result in a civil penalty of not more than $500 per day per restaurant with respect to which a violation was committed. The Commissioner of the Department of Consumer and Worker Protection would be required to conduct outreach about the requirements of this bill.

This bill would take effect 120 days after it becomes law.

Int. No. 2335-A, sponsored by Council Member Mark Gjonaj, will require the platforms to list a restaurant’s direct telephone number, if listing any telephone number for a restaurant. If the platform also includes an alternate number, they must provide a description of the telephone numbers that identifies each type of telephone number and any fees associated with their use. The Commissioner of the Department of Consumer and Worker Protection would be required to promulgate rules defining the content, size and location of the description. Violations of this bill would result in a civil penalty of not more than $500 per day per restaurant with respect to which a violation was committed.

“The landmark legislation we passed today gives our restaurants greater choice with how they are displayed on digital marketplaces and frees them from some of the tech industry’s more unsavory practices. A harmonious relationship between food delivery apps and restaurants is essential for small business recovery post-COVID,” said Council Member Mark Gjonaj.

This bill would take effect on the same day that Int. No. 2333-A takes effect (which is 120 days after becoming law).

Int. No. 2311-A, sponsored by Council Member Keith Powers, will require the third-party delivery platforms to share information related to delivery orders placed through their website or mobile application with restaurants that request it. The information would consist of the customer’s name, phone number, e-mail address, delivery address and the contents of their orders. Customers would be able to opt out of the sharing of this information, and the service would be required to provide a clear disclosure to customers explaining what information would be shared with the restaurant. The restaurant fulfilling the customer’s order would be permitted to retain that information, which must be provided by the platform in a machine-readable format. Platforms could not limit the restaurants’ use of the information, but the bill would prohibit the restaurants from selling, renting or disclosing the information without express consent from the customer, and the customer would be able to withdraw their consent to using their information. Violations of this bill would be result in a civil penalty of not more than $500 per day per restaurant with respect to which a violation was committed.

“After a devastating year for the restaurant industry, it’s imperative that the City Council is doing everything in our power to boost their recovery,” said Council Member Keith Powers. My bill, Int. 2311, will support local restaurants by making it easier for them to connect with customers, while also ensuring privacy protections for all New Yorkers. I’m proud to be helping these beloved small businesses as they fight to get back on their feet, and thank you to Speaker Johnson for his support.”

This bill would take effect on the same day that Int. No. 2333-A takes effect (which is 120 days after becoming law).

Int. No. 2356-A, sponsored by Council Member Mark Gjonaj, will extend Local Laws 51 and 87 of 2020, which prohibit third-party delivery platforms from charging restaurants for telephone orders that did not result in a transaction. Under the existing law, such charges are prohibited only when certain conditions apply. This bill would extend protections past the anticipated end date of those conditions until February 17, 2022. Violations of this bill would result in a civil penalty of not more than $500 per day per restaurant with respect to which a violation was committed.

This bill would take effect immediately.

Int. No. 2359-A, sponsored by Council Members Francisco Moya and Mar Gjonaj, extend Local Laws 52 and 88 of 2020, which prohibit third-party delivery platforms from charging restaurants more than 15% per order for delivery and more than 5% per order for all other fees. This bill would instead prohibit such charges from the anticipated end date of those conditions until February 17, 2022. It would also clarify the types of transaction fees exempted from these limits on charges. Violations of this bill would result in a civil penalty of not more than $1000 per day per restaurant with respect to which a violation was committed.

“For far too long, there’s been an imbalance of power between these third-party food delivery services and restaurants. Small businesses should not be pressured into accepting these fees in order to remain viable and competitive. We have the opportunity and a responsibility to protect our mom-and-pop shops and ensure they can survive. To allow the temporary cap to expire would completely handicap the recovery of so many businesses that are just starting to get back on their feet. I thank the Speaker and my colleagues in the Council for joining me as we work to protect the restaurant industry and its workers,” said NYC Council Member Francisco Moya, who represents District 21 in Queens.

This bill would take effect immediately.

CIVIL SERVICE AND LABOR

Requires human service contractors to enter into labor peace agreements

Int. No. 2252-A, sponsored by Speaker Corey Johnson, will require city human services contractors and certain subcontractors to enter into labor peace agreements with labor organizations seeking to represent their employees rendering services under City human services contracts. During such agreements, employers agree to maintain a neutral posture at union efforts to organize employee, meaning they agree to not hinder or disrupt the organizing process, while the union in turn agrees to not go on strike or otherwise stop work. While LPAs can be helpful to worker organizing, they likewise benefit employers and recipients of city services by ensuring service delivery will continue uninterrupted.

The bill would take effect 90 days after it becomes law.

“No City dollars should ever be paid out to employers who engage in union-busting and that’s exactly what this bill will help ensure,” said Speaker Corey Johnson. “I am proud to sponsor Int. 2252, which will give over 200,000 of our City’s essential human service workers the right to organize for the pay and benefits they deserve without fear of retaliation or punishment or interference from their employers.” 

HUMAN RIGHTS

Protects domestic workers

Int. No. 339-B, sponsored by Council Member Rose, extends the employment protections of the Human Rights Law (HRL) to all domestic workers regardless of staff size. Domestic workers include those employed at an employer’s residence for the purpose of caring for a child, sick or elderly person, or for housekeeping or any other domestic service purpose.  

Currently, the employment protections of the HRL do not apply to employers with fewer than four workers. Also, employees of employers with fewer than four employees total are not protected by the Pregnant Workers Fairness Act.

The protections in this bill include prohibitions against discrimination in employment, apprentice training programs, religious observance in the employment context, unemployment status, disparate impact discrimination in the employment context, and unlawful discrimination against victims of domestic violence, sex offenses or stalking. Domestic workers would also be entitled to reasonable accommodations for pregnancy, childbirth and related conditions such as lactation accommodations, upon request.

This bill would go into effect 200 days after it becomes law.

FINANCE

Authorize changes to the Flatiron/23^rd Street Partnership Business Improvement District

Int. No. 2291, sponsored by Council Member Daniel Dromm, by request of the Mayor, would authorize the Flatiron/23^rd Street Partership Business Improvement District (BID) in the Speaker’s district in Manhattan to expand its boundaries, increase its annual assessment, and change the formula by which properties within the BID are assessed.

Beck Street HDFC, in Council Member Rafael Salamanca’s district in the Bronx, would receive a full 40-year Article XI property tax exemption to preserve 83 units of affordable housing.

Maimonides, in Council Member Carlos Menchaca’s district in Brooklyn, would receive a partial 40-year Article XI property tax exemption to preserve 221 units of affordable housing.

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