Mayor Bill de Blasio signed seven pieces of legislation into law on May 27 providing relief for tenants, commercial establishments, and restaurants during the COVID-19 pandemic.

 

The new laws support struggling small businesses by imposing limits on third-party food delivery services, extending the suspension of sidewalk cafe fee collection, and protecting commercial tenants from harassment and personal liability. Together, the bills offer sweeping protections for New Yorkers in a time of unprecedented financial insecurity.

 

“New Yorkers have been fighting every day to flatten the curve and get through this pandemic together. Now, it’s time for us to give back to them,” said Mayor Bill de Blasio. “I’m proud to sign this package of bills into law to offer protections for our small businesses, restaurants, and tenants to ensure that our City can come back stronger.”

 

This package of bills includes the following provisions:

 

• It prohibits third-party food delivery services from charging restaurants a fee for telephone orders that do not result in an actual sale. The bill imposes penalties of up to $500 per violation, and the City can bring litigation seeking these penalties as well as restitution of illegally charged fees. The bill will take effect June 2, 2020, lasting until 90 days after the end of a declared emergency.

 

• It caps the fees that third-party food delivery services can charge restaurants for the duration of a declared emergency and for 90 days thereafter. Third-party food delivery services will be prohibited from charging restaurants a fee greater than 15% per order for delivery and 5% per order for any other charge. Currently, third-party food delivery services sometimes charge up to 30% of the total order. Violators are subject to civil penalties of up to $1,000 per restaurant per day. The bill will take effect on June 2, 2020.

 

• It suspends collection of indoor sidewalk cafe fees from restaurants from March 1, 2020 to February 28, 2021, and for outdoor sidewalk cafes through the duration of the emergency. Through Executive Order, the City already stopped collecting these fees for the duration of the emergency; this bill extends the suspension for indoor cafes until the end of February 2021.

 

• It designates threatening a commercial tenant based on its status as a COVID-19 impacted business a form of harassment, effective immediately. This includes businesses that were subject to capacity restrictions, were forced to close, or business owners who contracted the virus.

 

• It protects commercial tenants’ personal assets by temporarily prohibiting the enforcement of personal liability provisions in commercial leases or rental agreements involving COVID-19 impacted tenants. Threatening to or attempting to enforce such a provision will be considered a form of harassment, effective immediately.

 

• It expands the definition of tenant harassment to protect tenants from threats based on status as an essential employee or being impacted by COVID-19.

 

• It suspends renewal requirements for licenses and permits from City agencies during the duration of the emergency and extends such suspension for an extra 45 days. This will provide both City agencies and applicants enough time to complete and process renewals after the end of the emergency and when businesses come back online again. This bill takes effect immediately and will require the City to post a list of licenses not covered under the Executive Order.

 

“I thank Mayor de Blasio, Speaker Johnson and my colleagues in City Council for taking swift action on this legislation and their commitment to supporting our businesses through this crisis and beyond,” said Council Member Andrew Cohen.

 

“New York’s small businesses are in urgent need of the City’s help. These businesses have always been the lifeblood of our City and they will play a central role in the City’s recovery. This legislation is an important first step in planning for a safe reopening of NYC’s restaurants with sidewalk cafes figuring into a recovery strategy to support socially distanced dining and expanded seating capacity,” Cohen added.

 

“Eliminating burdensome sidewalk cafe fees will provide emergency relief to restaurants confronting huge revenue losses and unprecedented financial challenges so that they will have the opportunity to reopen and thrive in the future.”

 

Council Member Mark Gjonaj chaired the NYC Council Small Business Committee. “Today [May 27], New York City takes a monumental step towards protecting small businesses struggling to survive in a global crisis,” he said. “This package of third-party food delivery reforms will give locally-owned restaurants a fighting chance to stay open and pay their employees.”