New York Senate Bill S04927

New York 2025-2026 Regular Session

• Introduced: 2/14/25
• Refer: 2/14/25
• Refer: 1/7/26

Caption

Requires third-party food 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 delivery services shall not reduce the compensation of any worker as a result of gratuities; establishes penalties for violations of such provisions.

Summary

S04927 would add a new section to the General Business Law governing gratuities on third-party food delivery platforms. It requires platforms to present the option to add a tip or gratuity at the same point in the online checkout process when the order is placed, and to do so in plain language and a conspicuous manner. The bill defines “gratuity” as a voluntary amount chosen by the customer and described in a way that would lead a reasonable person to believe it is meant for the delivery worker beyond base pay. The bill also makes clear that customers cannot be required to pay a gratuity, though platforms may still offer a later opportunity to add, remove, or adjust a tip after the order is submitted. In addition, a platform may not reduce a worker’s compensation, including tips or gratuities, because it is complying with this law. Violations would be subject to civil penalties of up to $1,000 per violation, enforced by municipal consumer affairs offices or local government legal officials, with collected penalties retained locally.

Impact

This bill would create a new statewide consumer protection rule for third-party food delivery services and their tipping interfaces, while preserving any local laws that are not inconsistent with the new section. It would affect platform checkout design, customer tipping practices, and compensation policies for delivery workers classified as independent contractors. The measure also authorizes local enforcement and civil penalties, giving municipalities a direct role in policing compliance.

Sentiment

The available context suggests the bill is aimed at protecting both consumers and delivery workers by making tipping options clearer and preventing platforms from using compliance as a reason to reduce worker pay. The absence of recorded votes or committee transcript excerpts limits the ability to gauge detailed debate, but the bill’s structure indicates a generally pro-consumer, pro-worker policy approach. Its immediate effective date also suggests an intent to address the issue promptly.

Contention

The main potential points of contention are likely to be the timing and presentation requirements for gratuity prompts, the prohibition on reducing worker compensation, and the enforcement scheme. Delivery platforms may view the bill as imposing operational and compliance burdens, while worker advocates may focus on ensuring that tips truly reach workers and are not offset by base-pay changes. Another possible issue is the bill’s interaction with local regulations, especially in larger cities that already have rules affecting food delivery services.