Relates to protections and rights afforded to delivery network company (DNC) workers; requires DNCs to create internal procedures for workers to challenge deactivations; provides certain notice and other rights to workers to challenge deactivation both internally in a DNC and externally; allows the Department of Labor to investigate unwarranted deactivation of workers; makes related provisions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1941
SPONSOR: Rosenthal TITLE OF BILL:
An act to amend the labor law, in relation to protections and rights
afforded to delivery network company workers
PURPOSE:
This legislation will provide protections for app-based food delivery
workers against unwarranted account deactivation.
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends the labor law by adding a new article 21-B.
Section two establishes the effective date.
JUSTIFICATION:
Food delivery services have expanded greatly in recent years, allowing
people to easily place food delivery orders on mobile apps and websites.
The expansion of these apps has benefited restaurants, gig economy work-
ers and customers; however, the ability for these workers to remain on
the platform is dependent on the rating and feedback provided by custom-
ers. While each platform has its own specific policies, generally, a
delivery worker is at risk of having their account deactivated when
their rating drops below a certain threshold, including for ratings and
complaints levied against a worker for a slow or delayed delivery. In
many cases, workers are provided no warning of a forthcoming deacti-
vation or any opportunity to appeal.
These practices by app companies have led to a highly competitive and
speed-driven environment on the streets as delivery drivers compete to
receive more orders and earn better tips. The 2022 Bicycle Crash Data
Report released by the New York City Department of Transportation showed
an increase in the number of injuries and deaths involving e-bikes and
e-scooters, a mode of transportation relied upon by many delivery work-
ers, over previous years. Requiring delivery apps to follow a standard
process for account deactivation, including an opportunity for workers
to appeal the decision, will remove some of the uncertainty in their
job.
This legislation would protect delivery drivers by requiring all food
delivery services to adhere to a deactivation policy that prohibits
account deactivation based on rejection or cancellation of an order,
customer ratings or other factors without first conducting a fair and
objective investigation, with exceptions for certain egregious miscon-
duct. The legislation would also require all delivery drivers to receive
advance notice of an impending deactivation and an opportunity to appeal
the deactivation. Lastly, the legislation provides the state Department
of Labor with the authority to enforce the law and provides workers with
protections against retaliation for exercising rights afforded in the
bill.
LEGISLATIVE HISTORY:
2022-23: A.8070 - Referred to Labor; S.8215 - Referred to Labor
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
180 days.
