District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0280 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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3	3	_________________________ 1
4	4	Councilmember Kenyan McDuffie 2
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6	6	4
7	7	A BILL 5
8	8	6
9	9	____________ 7
10	10	8
11	11	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 9
12	12	10
13	13	____________________ 11
14	14	12
15	15	To amend Title 28 of the District of Columbia Official Code to prohibit service charges from 13
16	16	being included in consideration of sales in relation to the calculation of leases and to 14
17	17	define the fair practices of service charges for consumer protection; to amend Chapter 20 15
18	18	of Title 47 of the District of Columbia Official Code to include the definition of a service 16
19	19	charge and to exclude service charges from consideration of gross receipts; to amend the 17
20	20	Fair Meals Delivery Act of 2022 to require that third party delivery platforms does not 18
21	21	limit a restaurant from search results of a customer within 4 miles , does not limit the 19
22	22	availability of delivery drivers from the third party platform to the restaurant and 20
23	23	provides for food delivery workers access to restroom facilities, and to require a study of 21
24	24	the working conditions of food delivery workers; The Minimum Wage Act Revision Act 22
25	25	of 1992 as amended by the District of Columbia Tip Credit Elimination Act of 2022 to 23
26	26	establish a new timeline for the elimination of tipped credit minimum wage and to 24
27	27	establish a education program by the Mayor on the new wages for both consumers and 25
28	28	businesses. 26
29	29	27
30	30	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 28
31	31	act may be cited as the “ Workers and Restaurants Are Priorities Act of 2023”. 29
32	32	30
33	33	Sec. 2 Definitions. 31
34	34	Sec. 3 Section 28 of th e District of Columbia Official Code is amended as follows: 32
35	35	a new paragraph (28:2A-222) to read as follows: 33
36	36	“(28:2A-222) “Absent any language to the contrary in a lease for a 34
37	37	commercial tenancy, service charges shall not constitute sales for the purposes of calculating 35
38	38	percentage or other rent for the property leased. If there is any ambiguity in lease language 36
39	39	concerning the inclusion of service charges in calculating rent payable for commercial property 37
40	40	leased, there shall be a presumption that service fees are not to be included in the calculation. ”. 38 2
41	41
42	42	(a) For the purpose of this paragraph, the term “service charge” 39
43	43	means any mandatory fee paid as a percentage of the total cost of the food or beverages for 40
44	44	consumption on the premises of the vendor, if the food or beverages are served to a group of not 41
45	45	more than 10 persons, and the fee is used to pay base wages of the employees of the vendor. 42
46	46	Sec. 3.; 43
47	47	(A) Section 28- 3904 of the District of Columbia Official Code is amended 44
48	48	by adding a new subsection ( nn) to read as follows: 45
49	49	“(nn)” The imposition of a service charge by a restaurant or bar, imposed 46
50	50	as a percentage of sales, shall not be an unfair or deceptive trade practice, provided the 47
51	51	consumer is advised of the charge in advance of ordering food or beverages, verbally, by 48
52	52	signage in the establishment reasonably visible upon entry to the establishment or on any 49
53	53	website of the establishment.” 50
54	54	Sec 4. 51
55	55	Section 47- 2001(g) of the District of Columbia Official Code is amended as by 52
56	56	adding a new paragraphs (5) to read as follows: 53
57	57	(5)(A) “Service Charge” means any mandatory charge paid as a 54
58	58	percentage of the total cost of the food or beverages for consumption on the premises of the 55
59	59	vendor, if the food or beverages are served to a group of not more than 10 persons, and the 56
60	60	charge is used to pa y base wages of the employees of the vendor. 57
61	61	(B) For the purpose of this paragraph, gross receipts shall not 58
62	62	include a service charge, charged to any person as a percentage, not in excess of 22%, of food 59
63	63	and drink sold and subject to tax pursuant to DC Code § 47–2002(a)(3). 60 3
64	64
65	65	Sec. 5. The Fair Meals Delivery Act of 2022, effective March 10, 2023 (D.C. Law 24-61
66	66	292; D.C. Official Code § 48-651 et seq. ), is amended as follows: 62
67	67	(a) Section 2 (D.C. Official Code § 48-651) is amended by adding a new paragraph (2A) 63
68	68	to read as follows: 64
69	69	“(2A) “Food delivery worker” means any natural person or any organization 65
70	70	composed of no more than one natural person, whether or not incorporated or 66
71	71	employing a trade name, who is hired, retained, or engaged as an independent 67
72	72	contractor by a third-party meal delivery platform.” 68
73	73	(b) Section 3 (D.C. Official Code § 48-652) is amended by adding new subsection (e), 69
74	74	(f), and (g) to read as follows: 70
75	75	“(e) Any agreement that a third -party meal delivery platform enters into with a 71
76	76	restaurant must contain a provision allowing a food deliver y worker to use the 72
77	77	restroom facilities of the restaurant when performing a delivery or pickup service 73
78	78	at the restaurant. 74
79	79	“(f) A third-party meal delivery platform shall not exclude any restaurant with 75
80	80	whom the third-party delivery platform has an agreement from the search results of a customer 76
81	81	within 4 miles of a restaurant.” 77
82	82	“(g) A third-party meal delivery platform shall not reduce the number of delivery 78
83	83	drivers available to deliver an online order from a restaurant with whom the third-party delivery 79
84	84	platform has an agreement. Nothing in this section shall prohibit a third-party delivery platform 80
85	85	from offering priority delivery services for a fee.”. 81
86	86	(b) Section 7 (D.C. Official Code § 48-656) is amended as follows: 82
87	87	(1) A new subsection (c) is added to read as follows: 83 4
88	88
89	89	“The Deputy Mayor for Planning and Economic Development shall study the 84
90	90	working conditions for food delivery workers and issue a report to the Council of 85
91	91	the District of Columbia no later than December 31, 2023. In conducting such 86
92	92	study, the Deputy Mayor may coordinate with any other agency, organization, or 87
93	93	office that can assist in such study. Such study shall include, at minimum, 88
94	94	consideration of the pay food delivery workers receive and the methods by which 89
95	95	such pay is determined, the total income food delivery workers earn, the expenses 90
96	96	of such workers, the equipment required to perform their work, the hours of such 91
97	97	workers, the average mileage of a trip, the mode of travel used by such workers, 92
98	98	the safety conditions of such workers, and such other topics as the department 93
99	99	deems appropriate. In furtherance of such study, the Deputy Ma yor may request 94
100	100	or issue subpoenas for the production of data, documents, and other information 95
101	101	from a third-party meal delivery platform relating to food delivery workers that 96
102	102	include, but are not limited to, worker identifiers, information about the times that 97
103	103	such workers are available to work for such third- party meal delivery platform , 98
104	104	the mode of transportation such workers use, how trips are offered or assigned to 99
105	105	food delivery workers, the data such service maintains relating to the trips of such 100
106	106	workers, the compensation such workers receive from such third- party food meal 101
107	107	delivery platform , any gratuities such workers receive, information relating to 102
108	108	both completed and cancelled trips, agreements with or policies covering such 103
109	109	workers, contact information of such workers, information relating to the setting 104
110	110	of fees paid by food service establishments and consumers, and any other 105
111	111	information deemed relevant by the Deputy Mayor.” 106 5
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113	113	Sec. 6 The Minimum Wage Act Revision Act of 1992, effective March 25, 1993 (D.C. 107
114	114	Law 9–248; D.C. Official Code § 32–1003): 108
115	115	(a) Section (f)(5), (f)(6), (f)(7) and (f)(8) are repealed. 109
116	116	(b) New subsections (f)(9) and (f)(10) added to be read as follows : 110
117	117	“(f)(10) Except as provided in subsections (h) and (i) of this section, as of July 1, 2025, 111
118	118	the tipped minimum wage shall be not less than the minimum wage as set by subtitle (a) of this 112
119	119	title, with tips on top. 113
120	120	“(f)(10) “Commencing October 1, 2023, there shall be a public education campaign to 114
121	121	educate consumers and workers concerning changes to the tipped wage compensation system in 115
122	122	the District of Columbia, including the elimination of the tip credit, that service charges are the 116
123	123	property of businesses and the desirability of continuation of tipping practices under the new 117
124	124	wage models implemented as a result of the passage and effectiveness of the District of 118
125	125	Columbia Tip Credit Elimination Act of 2022. The campaign shall be implemented by the Mayor 119
126	126	or the Mayor’s designee.” 120
127	127	Sec. 8. Fiscal impact statement.
128	128	121
129	129	The Council adopts the fiscal impact statement in the committee report as the fiscal 122
130	130	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 123
131	131	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
132	132	124
133	133	Sec. 9. Effective date.
134	134	125
135	135	This act shall take effect following approval by the Mayor (or in the event of veto by the 126
136	136	Mayor, action by the Council to override the veto), a 30 -day period of congressional review as 127
137	137	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 128 6
138	138
139	139	24, 1973, (87 Stat. 813; D.C. Official Code § 1- 206.02(c)(1)), and publication in the District of 129
140	140	Columbia Register. 130