Governor Murphy Limits Excessive Third-Party Delivery Service Fees During COVID-19 State Of Emergencies
TRENTON – Governor Phil Murphy signed legislation (S2437) on June 26 which places limits on service fees charged to restaurants by third-party delivery applications and websites during state of emergencies declared by the Governor in response to COVID-19.
The legislation provides much needed relief to restaurants across New Jersey that have faced excessive fees while being limited to takeout and delivery service.
“By following public health guidelines, restaurants across New Jersey have contributed to flattening the curve and to the enormous progress we have made against COVID-19,”said Governor Phil Murphy.“Through this legislation, now law, dining establishments throughout our state will receive much needed relief from excessive service fees if public health necessitates the return of dine-in restrictions.”
The legislation prohibits third-party food takeout and delivery service applications and websites from charging service fees greater than 20 percent of the cost of the individual order or greater than 10 percent of the cost of the individual order, when the order is delivered by an employee of the restaurant or an independent contractor with whom the restaurant has contracted directly.
The limits are in effect during a state of emergency and until the first day of the third month following any state of emergency declared by the Governor in response to COVID-19 that restricts restaurant dine-in service to less than 25% of the maximum capacity allowed by law.
Click here to read the official press statement.
