Int. No. 1332-A

By Council Members Brannan, Nurse, Abreu, Restler, Cabán, Banks, Marte, Brewer, Hanif, Krishnan, Gutiérrez, Joseph, Feliz, Ayala, Hudson, Ossé, Avilés, Sanchez, Salaam, De La Rosa, Farías, Williams, Stevens, Brooks-Powers, Powers, Lee, Louis, Epstein and the Public Advocate (Mr. Williams)

A Local Law to amend the administrative code of the city of New York, in relation to the wrongful deactivation of app-based contracted delivery workers

Be it enacted by the Council as follows:

Section 1. The definitions of “delivery service” and “deactivation” in section 20-1501 of the administrative code of the city of New York, the definition of “delivery service” as added by local law number 123 for the year 2025 and the definition of “deactivation” as added by local law number 95 for the year 2025, are amended to read as follows:

Delivery service. The term “delivery service” means a person that facilitates, offers, or arranges for the delivery of goods to or from a location in the city, including, but not limited to, a third-party food delivery service[ and], a third-party courier service, and third-party grocery delivery service, provided that the term “delivery service” does not include any such person that facilitates, offers or arranges fewer than 50 trips each week, or any person that facilitates, offers or arranges for the delivery of goods solely by vehicles required by federal or state law, rule or regulation to be registered with the federal motor carrier safety administration.

Deactivation. The term “deactivation” means any indefinite or permanent discharge, termination or layoff of a contracted delivery worker or any indefinite or permanent revocation [or restriction] of a contracted delivery worker’s access to the delivery platform or authorization to accept deliveries on the delivery platform.

§ 2. Subdivision b of section 20-1507, as amended by local law number 123 for 2025, is amended to read as follows:

b. 1. Any person alleging a violation of this chapter may file a complaint with the department within 2 years of the date the person knew or should have known of the alleged violation, except that a complaint alleging a violation of section 20-1533 may be filed within one year after the effective date of the local law that added subchapter 3 of this chapter.

2. Upon receiving such a complaint, the department shall investigate it, except that upon receiving a complaint alleging a violation of subchapter 3, the department may investigate the complaint.

3. The department may open an investigation on its own initiative.

4. A person or entity under investigation shall, in accordance with applicable law, provide the department with information or evidence that the department requests pursuant to the investigation. The department may attempt to resolve an investigation concerning a violation of this chapter through any action authorized by chapter 64 of the charter. Adjudicatory powers pursuant to this subchapter may be exercised by the commissioner or by the office of administrative trials and hearings pursuant to chapter 64 of the charter, in accordance with any delegation of such adjudicatory powers by the department to such office pursuant to paragraph (1) of subdivision (h) of section 2203 of the charter.

5. The department shall keep the identity of any complainant confidential unless disclosure is necessary to resolve the investigation or is otherwise required by law. The department shall, to the extent practicable, notify such complainant that the department will be disclosing the complainant's identity before such disclosure.

§ 3. Subdivision a of section 20-1508, as amended by local law number 123 for 2025, is amended to read as follows:

a. For violations of their rights under this chapter, a contracted delivery worker shall be entitled to the following relief:

1. all compensatory damages and other relief required to make the worker or former worker whole;

2. an order directing compliance with the requirements set forth in this chapter; and

3. for each violation of:

(a) section 20-1504,

(1) $500 for each violation not involving denial of future work opportunities or deactivation;

(2) $2,500 for each violation involving denial of future work opportunities or deactivation; and

(3) any equitable relief appropriate under the circumstances, including but not limited to, rescission of any discipline issued, reinstatement of any deactivated contracted delivery worker, or payment of any lost earnings resulting from such retaliation.

(b) section 20-1521, $200;

(c) section 20-1522, including any minimum payment established by rule pursuant to section 20-1522, 3 times the amount of any payment that should have been made and was not timely made;

(d) section 20-1523, $200;

(e) section 20-1524, $200; [and]

(f) section 20-1527, $200[.];

(g) section 20-1532 or section 20-1533, reinstatement or restoration of access to the delivery platform of a delivery service, unless waived by a contracted delivery worker;

(h) section 20-1532, the department may, in addition, grant the following relief: $500, rescission of any discipline issued, payment of any lost earnings resulting from the wrongful deactivation, and any other equitable relief as may be appropriate;

(i) subdivision c of section 20-1534, $500;

(j) section 20-1536, $500; and

(k) section 20-1539, $500.

§ 4. Subdivision a of section 20-1509, as amended by local law number 123 for 2025, is amended to read as follows:

a. For each violation of this chapter, except for any violation of section 20-1533, any person is liable for a penalty of $500 for the first violation and, for subsequent violations that occur within 2 years of any previous violation of this chapter, up to $750 for the second violation and up to $1,000 for each succeeding violation.

§ 5. Subdivisions a, b, and c of section 20-1511, as amended by local law number 123 for 2025, are amended to read as follows:

a. Any person alleging a violation of the following provisions of this chapter may bring a civil action, in accordance with applicable law, in any court of competent jurisdiction:

1. section 20-1504;

2. section 20-1521;

3. section 20-1522, including any minimum payment established by rule pursuant to section 20-1522;

4. section 20-1523; [and]

5. section 20-1524[.];

6. section 20-1532;

7. section 20-1533;

8. section 20-1534;

9. section 20-1536; and

10. section 20-1539.

b. Such court may order compensatory, injunctive and declaratory relief, including the remedies set forth in section 20-1508, and reasonable attorney's fees and costs, provided that, for each violation of section 20-1532 or 20-1533, the court may order reinstatement or restoration of access to the delivery platform of the contracted delivery worker, unless waived by the contracted delivery worker, and may order the delivery service to pay the reasonable attorney’s fees and costs of the contracted delivery worker, and in addition, for each violation of section 20-1532 or 20-1533, the court may order punitive damages.

c. A civil action under this section shall be commenced within 2 years of the date the person knew or should have known of the alleged violation, except that for a violation of section 20-1533, a civil action shall be commenced within one year after the effective date of the local law that added subchapter 3 of this chapter.

§ 6. Chapter 15 of title 20 of the administrative code of the city of New York is amended by adding a new subchapter 3 to read as follows:

SUBCHAPTER 3

WRONGFUL DEACTIVATION OF APP-BASED CONTRACTED DELIVERY WORKERS

§ 20-1531 Definitions. As used in this subchapter, the following terms have the following meanings:

Delivery platform. The term “delivery platform” means a website, mobile application, or other internet service through which a delivery service offers or assigns a trip to a contracted delivery worker retained by such delivery service.

Egregious misconduct. The term “egregious misconduct” means misconduct that is so outrageous, dangerous, or illegal that a delivery service cannot reasonably expect to correct it through progressive discipline. “Egregious misconduct” may include, but is not limited to, depending on the circumstances: (i) violence or threats of violence; (ii) theft; (iii) sexual harassment; (iv) discrimination in violation of federal, state, or local law; or (v) willful destruction of property.

Just cause. The term “just cause” means a contracted delivery worker’s misconduct or failure to satisfactorily perform their job duties for a delivery service.

Misconduct. The term “misconduct” means conduct that is demonstrably and materially harmful to a delivery service’s legitimate business interests.

Prior deactivation. The term “prior deactivation” means a deactivation that occurred during the 6 years prior to the effective date of the local law that added this subchapter.

Probation period. The term “probation period” means a period of 30 calendar days beginning on the first date that a contracted delivery worker performs delivery services for a delivery service.

Progressive discipline. The term “progressive discipline” means a disciplinary system that provides for a graduated range of disciplinary measures, including but not limited to warnings and further training requirements, in response to a contracted delivery worker’s misconduct or failure to satisfactorily perform job duties for a delivery service, with the type of disciplinary measure varying based on the frequency and degree of such misconduct or failure.

§ 20-1532 Prohibition on wrongful deactivation. a. A delivery service shall not deactivate a contracted delivery worker after such contracted delivery worker’s probation period with such service except for just cause, for a bona fide economic reason, as described in section 20-1534, or where federal, state, or local law or rule requires such delivery service to deactivate such contracted delivery worker.

b. In determining whether a delivery service has deactivated a contracted delivery worker for just cause, a fact-finder shall consider, in addition to any other relevant factors, whether:

1. Such contracted delivery worker knew or should have known of such delivery service’s policy, rule, or practice that forms a basis for progressive discipline or such deactivation and knew or should have known of the potential consequences for violation of such policy, rule, or practice;

2. Such delivery service’s policy, rule, or practice that forms a basis for progressive discipline or such deactivation is reasonably related to safe and efficient delivery service operations;

3. Such delivery service provided relevant and adequate training to such contracted delivery worker;

4. Such delivery service’s policy, rule, or practice that forms a basis for such deactivation, including the utilization of progressive discipline, was reasonable and applied consistently;

5. Such delivery service undertook a fair and objective investigation into such contracted delivery worker’s misconduct or failure to satisfactorily perform job duties;

6. Such deactivation is a reasonable response to such contracted delivery worker’s misconduct or failure to satisfactorily perform job duties and accounts for any mitigating circumstances, including but not limited to such contracted delivery worker’s past work history; and

7. Such contracted delivery worker violated the policy, rule, or practice or engaged in any misconduct or failure to satisfactorily perform job duties that forms a basis for progressive discipline or such deactivation.

c. Except where deactivation is for egregious misconduct, a deactivation of a contract delivery worker shall not be considered based on just cause unless a delivery service demonstrates that:

1. Such delivery service has utilized progressive discipline; provided, however, that such delivery service may not rely on progressive discipline issued more than 1 year before such deactivation; and

2. Such delivery service had a written policy on progressive discipline that was in effect and was provided to such contracted delivery worker.

d. Where a deactivation of a contracted delivery worker is for a bona fide economic reason, as described in section 20-1534, a delivery service must provide, in a form and manner designated by the department, an advance notice of layoff to such contracted delivery worker at least 120 days prior to such deactivation. Such advance notice shall state all the precise and detailed reasons for, and the effective date of, such deactivation. Such advance notice shall include information about: (i) such contracted delivery worker’s right to challenge such deactivation as unlawful pursuant to this subchapter; (ii) how such contracted delivery worker may initiate an informal resolution process with such delivery service pursuant to section 20-1537; (iii) the opportunity for such contracted delivery worker to submit evidence to substantiate a challenge to such deactivation; and (iv) such contracted delivery worker’s right to file a complaint with the department, or initiate a private action.

e. Within 72 hours after deactivating a contracted delivery worker, a delivery service shall provide, in a form and manner designated by the department, a notice of deactivation to such contracted delivery worker which contains a written explanation of all the precise and detailed reasons for such deactivation and the effective date of such deactivation. Such notice shall include information about: (i) such contracted delivery worker’s right to challenge such deactivation as unlawful pursuant to this subchapter; (ii) how such contracted delivery worker may initiate an informal resolution process with such delivery service pursuant to section 20-1537; (iii) the opportunity for such contracted delivery worker to submit evidence to substantiate a challenge to such deactivation; and (iv) such contracted delivery worker’s right to file a complaint with the department, or initiate a private action..

f. This section shall not apply to any deactivation that occurred prior to the effective date of the local law that added this section.

§ 20-1533 Prior deactivations. a. Within 1 year after the effective date of the local law that added this section, a contracted delivery worker who was subject to a prior deactivation by a delivery service may petition such delivery service for reinstatement or restoration of access to such delivery service’s delivery platform. Within 30 days after receipt of such petition, such delivery service shall reinstate or restore such contracted delivery worker’s access to such delivery platform, unless such prior deactivation occurred during the probation period or was for just cause, for a bona fide economic reason, as described in section 20-1534, or required by federal, state, or local law or rule.

b. In determining whether a prior deactivation of a contracted delivery worker by a delivery service was for just cause, a fact-finder shall consider, in addition to any other relevant factors, whether:

1. Such contracted delivery worker knew or should have known of such delivery service’s policy, rule, or practice that formed a basis for such prior deactivation and knew or should have known of the potential consequences for violation of such policy, rule or practice;

2. Such delivery service’s policy, rule, or practice that formed a basis for such prior deactivation was reasonably related to safe and efficient delivery service operations;

3. Such delivery service’s policy, rule or practice that formed a basis for such prior deactivation was reasonable and applied consistently;

4. Such prior deactivation was a reasonable response to such contracted delivery worker’s misconduct or failure to satisfactorily perform job duties and accounted for any mitigating circumstances, including, but not limited to, such contracted delivery worker’s past work history;

5. Such contracted delivery worker violated the policy, rule, or practice or committed the misconduct or failure to satisfactorily perform job duties that formed a basis for such prior deactivation; and

6. Such delivery service considered any exculpatory evidence or other facts indicating that such contracted delivery worker did not violate such delivery service’s policy, rule or practice.

c. If a delivery service does not reinstate or restore access of a contracted delivery worker who was subject to a prior deactivation to such delivery service’s delivery platform within 30 days after receipt of a petition pursuant to subdivision a of this section, such delivery service shall provide a written explanation, in a form and manner designated by the department, to such contracted delivery worker of all the precise and detailed reasons for such prior deactivation. Such written explanation shall include information about: (i) such contracted delivery worker’s right to challenge such prior deactivation as unlawful pursuant to this subchapter; (ii) how such contracted delivery worker may initiate an informal resolution process with the delivery service pursuant to section 20-1537; (iii) the opportunity of such contracted delivery worker to submit evidence to substantiate a challenge to such prior deactivation; and (iv) such contracted delivery worker’s right to file a complaint with the department, or initiate a private action.

d. Notwithstanding any other provision of this section, a delivery service may decline to immediately reinstate or restore access to such delivery service’s delivery platform to a contracted delivery worker whose access is required to be reinstated or restored pursuant to subdivision a of this section if such contracted delivery worker does not meet a minimum requirement that applies to all current contracted delivery workers for such delivery service or if such delivery service is not providing access to such delivery platform to any new contracted delivery worker, and has not provided such access during the 3 months prior to the effective date of the local law that added this section. Where such delivery service declines to immediately reinstate or restore access to such delivery platform pursuant to this subdivision, such delivery service shall maintain a waitlist of contracted delivery worker whose access to such delivery platform is required to be reinstated or restored pursuant to subdivision a of this section and reinstate or restore such contracted delivery worker’ access to such delivery platform, in the order in which such contracted delivery workers were placed on such waitlist, provided that any such contracted delivery worker meets the minimum requirements that apply to all current contracted delivery workers for such delivery service, prior to providing any other new contracted delivery worker access to such delivery platform.

§ 20-1534 Bona fide economic reasons. a. A deactivation, including a prior deactivation, shall not be considered based on a bona fide economic reason unless supported by a delivery service’s business records demonstrating that such deactivation is in response to: (i) a proportionate reduction in volume of sales or profit within the fiscal quarter that ended prior to the issuance of a notice of layoff required by subdivision d of section 20-1532; or (ii) a delivery service discontinuing its driving services in the city.

b. 1. Where a delivery service performs deactivations of contracted delivery workers based on a bona fide economic reason, such deactivations must be made in order of seniority of such contracted delivery workers, in accordance with rules of the department. For purposes of this section, seniority shall account for the date such contracted delivery worker commenced serving as a delivery worker for such service, and the amount of work performed by such contracted delivery worker in the timeframe.

2. A delivery service shall make reasonable efforts to offer reinstatement or restoration of access to such delivery service’s delivery platform to any contracted delivery worker deactivated by such delivery service based on a bona fide economic reason within the previous 3 years, if any, before such delivery service may provide any other new contracted delivery worker access to such delivery platform.

3. This subdivision shall apply only to deactivations that occur on or after the effective date of the local law that added this section.

§ 20-1535 Burden of proof; evidence. a. In any proceeding alleging a violation by a delivery service of section 20-1532 or section 20-1533, such delivery service shall bear the burden of proving just cause pursuant to section 20-1532 or 20-1533 by a preponderance of the evidence, subject to the rules of evidence as set forth in the civil practice law and rules or, where applicable, the common law.

b. In determining whether a delivery service had just cause for a deactivation, a fact-finder may not consider any reasons proffered by the delivery service not included in the notice of deactivation provided to the contracted delivery worker pursuant to subdivision e of section 20-1532 or the written explanation provided to the contracted delivery worker pursuant to subdivision c of section 20-1533.

c. A contracted delivery worker may submit evidence in any proceeding alleging a violation of this subchapter that was not provided to a delivery service pursuant to section 20-1533 or section 20-1537, and a fact-finder shall consider such evidence, notwithstanding any failure by such contracted delivery worker to submit such evidence to such delivery service prior to such proceeding.

§ 20-1536 Provision of data. a. Upon the issuance of a notice of deactivation required pursuant to subdivision e of section 20-1532, a delivery service shall provide a deactivated contracted delivery worker with information and data relevant to such contracted delivery worker’s deactivation. Such information shall include, but need not be limited to:

1. Performance data specific to such contracted delivery worker;

2. All customer comments, ratings, and complaints received regarding the contracted delivery worker; and

3. Anonymized and aggregated reports, covering the 12 months prior to such contracted delivery worker’s deactivation, regarding discipline, including deactivation, imposed by such delivery service on any other contracted delivery workers who engaged in the same or similar misconduct or failure to satisfactorily perform job duties forming a basis for the deactivation of the contracted delivery worker subject to such notice.

b. The information or data required by subdivision a of this section shall be redacted to remove the personally identifiable information of customers, provided that a factfinder may require disclosure of certain personally identifiable information if a contracted delivery worker could not otherwise meaningfully contest the basis for the deactivation.

c. Upon the issuance of the notice required pursuant to subdivision c of section 20-1533, a delivery service shall provide a deactivated contracted delivery worker with information and data relevant to such contracted delivery worker’s deactivation, including all information required under subdivision a of this section, to the extent that such information is available to such delivery service.

d. For at least 6 years after deactivating a contracted delivery worker, a delivery service must continue to provide such contracted delivery worker with access to all information and data concerning such contracted delivery worker that such contracted delivery worker had access to prior to deactivation, including but not limited to such contracted delivery worker’s tax and payment records.

§ 20-1537 Informal resolution process. a. A delivery service shall maintain an email address, website or other form of electronic communication through which a contracted delivery worker or their representative may challenge such contracted delivery worker’s deactivation, prior deactivation, or impending deactivation for which such contracted delivery worker received a notice of layoff pursuant to subdivision d of section 20-1532 as unlawful pursuant to this subchapter. Such delivery service must provide such contracted delivery worker an opportunity to submit evidence to substantiate any such challenge and accept written communications pursuant to this section in the language in which they are written.

b. A contracted delivery worker may seek informal resolution of a deactivation of such contracted delivery worker, or an impending deactivation for which such contracted delivery worker receives a notice of layoff pursuant to subdivision d of section 20-1532, by a delivery service by initiating, within 1 year of such deactivation or receipt of such notice of layoff, an informal resolution process through the email address, website, or other form of electronic communication maintained by such delivery service pursuant to subdivision a of this section, or through any other means that such contracted delivery worker and such delivery service agree to. The parties shall have 15 days after commencing such informal resolution process to reach a resolution, unless such contracted delivery worker and such delivery service mutually agree to a longer timeframe. If the parties resolve a challenge pursuant to this subdivision, they shall memorialize such resolution in a written agreement, on a form provided by the department.

c. A failure by a delivery service to engage in an informal resolution process as described in this section shall not be subject to a civil penalty under this chapter.

§ 20-1538 Reporting; records; information. a. Data collection and reporting.  No less than annually, the department shall make available on the city’s website a report on deactivations and alleged violations of sections 20-1532 and 20-1533 during the preceding calendar year. The department shall promulgate rules requiring that delivery services produce anonymized, aggregated data necessary to prepare such report. Such report shall include, with respect to the year preceding the release of such report: (i) the number of contracted delivery workers of each delivery service deactivated for just cause or bona fide economic reasons; (ii) the number of contracted delivery workers who filed complaints with the department alleging violations of sections 20-1532 and 20-1533 and the outcomes of such complaints; (iii) the number of contracted delivery workers who initiated an informal resolution process; (iv) the number of contracted delivery workers who reached an informal resolution with a delivery service; (v) the number of contracted delivery workers who commenced arbitrations or private actions that include claims alleging violations of sections 20-1532 or 20-1533 and the outcomes of such proceedings; and (vi) any other information the department deems relevant. Until all contracted delivery workers placed on a waitlist pursuant to section 20-1533 have had their delivery platform access restored, such report shall also include the number of contracted delivery workers with prior deactivations who petitioned a delivery service for reinstatement or restoration of their access to such delivery service’s delivery platform and the number of contracted delivery workers who were placed on a waitlist pursuant to section 20-1533.

b. Recordkeeping. 1. The department may promulgate rules concerning the maintenance, retention, and provision by a delivery service of data necessary to the implementation and enforcement of this subchapter, which may include a requirement that a delivery service adhere to a uniform system of records and submit such records and other reports as the department may determine, in accordance with applicable law and rules and with appropriate notice.

2. To implement or enforce the provisions of this subchapter, the department may issue an order or subpoena for the production of data, documents, testimony, or other information from a delivery service. Such data, documents, testimony, or other information may include, but are not limited to, information about the data that a delivery service monitors, collects, or stores about or from a contracted delivery worker or customer; information about discipline imposed on a contracted delivery worker; and any other information deemed relevant by the department. In accordance with applicable law and rules and upon reasonable notice of no less than 14 days, a person who receives a request or subpoena for data, documents, or other information pursuant to this section shall produce such data, documents or information to the department in its original format or a machine-readable electronic format as set forth in rules of the department.

c. Information and assistance program. The department shall establish a program that provides information and assistance to contracted delivery worker relating to the provisions of this subchapter. Such program shall include assistance by a natural person by phone and email and outreach and education to the public relating to the provisions of this subchapter. Such program shall not provide legal advice but may provide general information and referrals to legal service providers.

§ 20-1539 Progressive discipline policy. a. A delivery service shall maintain a written progressive discipline policy in a single writing and adhere to such policy.

b. The written policy required pursuant to subdivision a of this section shall satisfy all requirements of this subchapter and, at a minimum, address the following:

1. Types of misconduct by a contracted delivery worker that may warrant discipline;

2. Any performance standards used to assess failure to satisfactorily perform job duties by a contracted delivery worker;

3. Disciplinary measures that may be applied to a contracted delivery worker, including but not limited to deactivation;

4. Procedures for notifying a contracted delivery worker of disciplinary measures that a delivery service intends to take against such contracted delivery worker and providing an opportunity to respond; and

5. Procedures for applying discipline against a contracted delivery worker.

c. The written policy required pursuant to subdivision a of this section must be clear and specific such that a reasonable person can understand the acts and omissions that may result in deactivation or other disciplinary measures.

d. A delivery service shall provide the written policy required pursuant to subdivision a of this section to each contracted delivery worker retained by such delivery service in English and in any other language as the department may determine by rule. A delivery service shall provide such policy to each contracted delivery worker no later than the effective date of this subdivision, or prior to such contracted delivery worker’s first trip, whichever is later, in a form and manner that the department may determine by rule.

e. A delivery service shall notify each contracted delivery worker of any change to the written policy required pursuant to subdivision a of this section at least 14 days before such change takes effect.

f. The department may promulgate rules establishing minimum requirements for the progressive discipline policy required pursuant to subdivision a of this section, including, but not limited to, requiring that a delivery service establish a system of graduated discipline based on the accrual of disciplinary points, strikes, or other similar consequences for misconduct or failure to satisfactorily perform job duties.

§ 20-1540 Exceptions. This subchapter shall not:

1. Apply to the deactivation of any contracted delivery worker by a delivery service during such contracted delivery worker’s probation period with such service;

2. Limit or otherwise affect the applicability of any right or benefit conferred upon or afforded to a contracted delivery worker by the provisions of any other law, regulation, rule, requirement, policy, or standard, including but not limited to any federal, state, or local law providing for protections against retaliation or discrimination.

3. Apply to a delivery service that does not maintain a website, mobile application, or other internet service through which such delivery service offers or assigns a trip to a contracted delivery worker retained by such delivery service.

§ 7. This local law takes effect 1 year after it becomes law, provided that: (i) the commissioner of consumer and worker protection shall take such measures as are necessary for the implementation of this local law, including the promulgation of rules, prior to such date; and (ii) that any requirement on a delivery service, as defined in section 20-1501 of the administrative code of the city of New York, to provide data, documents, testimony, or other information to the department of consumer and worker protection, by rules adopted pursuant to subdivisions (a) and (b) of section 20-1538, as added by section six of this local law, may take effect prior to such date. 

EH

LS #6040/15520

12/10/2025 11:11 PM