Today the NYC Hospitality Alliance was proud to speak at a virtual bill signing alongside Mayor de Blasio where he signed 5+ bills into law, which we fought hard to pass on our industry's behalf.
These important bills suspend commercial liability in leases, cap third party delivery fees, waive sidewalk café fees and more (additional details below).
The enactment of these laws are exactly why we need the NYC Hospitality Alliance fighting in the halls of government for the future of our industry. This major victory, along with many additional policies we're advocating for like opening outdoor space for restaurant and bar service will require that our team continues to work around the clock for you! Email us at firstname.lastname@example.org to learn how to further support our efforts to support our industry. The City of New York needs the restaurant and nightlife industry to recover, in order for our City to fully recover.
The NYC Hospitality Alliance thanks Mayor de Blasio and the many sponsors of the bills (prime sponsors include Speaker Johnson, Council Members Gjonaj, Moya, Rivera, Adams and Cohen) and all the other co-sponsors for their support of our city's hospitality industry during these trying time.
HIGHLIGHTS OF THE FIVE NEW LAWS
PERSONAL LIABILITY IN COMMERCIAL LEASES (Int. No. 1932-A) & TENANT HARASSMENT (Int. No. 1914-A) - takes effect immediately
Landlords will be blocked from enforcing personal liability clauses in leases for commercial tenants who default because of a government order to close indoor eating and drinking operations during the emergency, if the default occurs between March 7th and September 30th, 2020. It will also be unlawful to threaten a commercial tenant based on their status as a business affected by COVID-19 or the tenant's receipt of a rent concession during the Covid-19 emergency.
THIRD PARTY DELIVERY SERVICES (Int. No. 1908-B) - takes effect on Tuesday, June 2, 2020
During the emergency and for 90 days after, third party delivery platforms cannot charge more than 5% of an order. If the company is also handling the actual delivery, they can charge an additional 15% for the delivery itself. We are also working with the de Blasio Administration and the City Council to make a fee cap permanent.
TELEPHONE ORDERS (Int. No. 1898-A) - takes effect on Tuesday, June 2, 2020
During the emergency and 90 days thereafter, there will be a fine of up to $500 for each time a third-party delivery platform charges a business for a "telephone order" that did not actually result in an actual transaction during that call. Again, we are working to make this permanent.
SIDEWALK CAFE FRANCHISE FEES (Int. No. 1916-A) - takes effect immediately
The rent paid by restaurants to the City for the use of the sidewalk for a sidewalk cafe (called franchise fees), generally cost restaurants thousands of dollars. These fees will be forgiven for the rest of the year. Rent for unenclosed cafes will not start again until March 1, 2021, and for enclosed cafes, when the emergency order for restaurants is lifted.