Chapter 5.84

COVID-19 REGULATIONS FOR FOOD DELIVERY PLATFORMS

For the purpose of this chapter, the words, terms, and phrases shall be defined as set forth herein, unless the context clearly indicates a different meaning is intended. Words, terms, and phrases used in this chapter that are not specifically defined shall be construed according to their context and the customary usage of the language.

City. The City of Paramount.

Customer. Any person, firm, or association who makes use of a food delivery platform for the purpose of obtaining food from a restaurant.

Delivery fee. A fee charged by a food delivery platform to a restaurant for the act of delivering the food from the restaurant to a customer. The term does not include any other fee or cost that may be charged by the food delivery platform to a restaurant, such as listing, subscription, or advertising fees, or fees related to processing an online order, including, but not limited to, service fees, fees for facilitating customer pick-up, and credit card processing fees.

Food. All articles and substances used for food and drink, confectionery or condiment whether simple or compound, and all ingredients and components used in the preparation thereof.

Food delivery platform. Any person, firm, or association that utilizes an online website, mobile application, or other similar presence to interact with customers, to act as an intermediary between its customers and a restaurant, and offers or arranges for the sale, delivery, or pick-up of food sold or prepared by a restaurant located in the county.

Online order. An order placed by a customer through or with the assistance of a food delivery platform, including telephone orders, orders made over the internet through a website, and orders made via a mobile application, for delivery to, or pick-up by, the customer.

Purchase price. The price for the items contained in an online order, minus any applicable coupon or promotional discount provided to the customer by the restaurant through the food delivery platform. This definition does not include taxes, gratuities, or any other fees or costs that may make up the total amount charged to the customer of an online order.

Restaurant. Any bistro, brasserie, buffet, café, coffee shop, cafeteria, sandwich shop, tavern, cocktail lounge, pub, theater snack bar, juice bars, bed and breakfast, private school cafeteria or eating establishment, and any other eating or drinking establishment, organization or club, including veterans' club, boarding house or guest house, which gives, sells or offers for sale, food or drink to the public, guests, patrons or employees.

Worker. Any person working for a food delivery platform, including as an employee or an independent contractor. (Ord. 1149 § 2, 2021)

• A. It is unlawful for a food delivery platform to charge a restaurant any combination of fees, commissions, or costs that totals more than 20% of the purchase price of each online order. Fees, commissions, or costs includes a delivery fee.

• B. It is unlawful for a food delivery platform to charge a restaurant a delivery fee that totals

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City of Paramount, CA § 5.84.020

PARAMOUNT CODE

§ 5.84.040

more than 15% of the purchase price of each online order.

• C. It is unlawful for a food delivery platform to charge a restaurant a delivery fee for an online order that does not involve the delivery of food.

• D. It is unlawful for a food delivery platform to charge a restaurant any fee, commission, or cost other than as permitted in subsections A through C, above.

• E. It is unlawful for a food delivery platform to reduce the compensation, including any tip or gratuity, paid to any worker as a result of the prohibitions in this chapter.

• (Ord. 1149 § 2, 2021)

• A. A food delivery platform shall disclose to the customer an accurate, clearly identified, and itemized cost breakdown for each and every online order, including the following:

  1. The purchase price of any food.

  2. Each and every fee, commission, or cost charged to the customer.

  3. Each and every fee, commission, or cost charged to the restaurant, including any delivery fee.

  4. Any tip or gratuity authorized by the customer to be paid to the worker delivering the food.

B. None of the fees, commissions, or costs in subsection A, above, may be combined together. (Ord. 1149 § 2, 2021)

• A. A restaurant, customer or worker claiming a violation of this chapter may bring an action in Superior Court of the State of California against a food delivery platform and may be awarded:

  1. All actual damages suffered.

  2. Other legal or equitable relief the court may deem appropriate.

  3. The court shall award reasonable attorneys' fees and costs to a restaurant, customer, or worker who prevails in any such enforcement action. If a restaurant, customer, or worker fails to prevail against a food delivery platform, a court may award reasonable attorneys' fees and costs to the food delivery platform upon a determination by the court that the action was frivolous.

• B. A civil action alleging a violation of any provision of this chapter shall commence only after the following requirements have been met:

  1. The restaurant, customer or worker provides written notice to the food delivery platform of the specific section of this chapter which is alleged to have been violated and the facts to support the alleged violation; and

  2. The food delivery platform is provided 45 days from the date of receipt of the written

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City of Paramount, CA § 5.84.040

BUSINESS LICENSES REGULATIONS

§ 5.84.060

notice to cure any alleged violation (Ord. 1149 § 2, 2021)

Except for a collective bargaining agreement provision, any waiver by a worker of any or all provisions of this chapter shall be deemed contrary to public policy and shall be void and unenforceable. Other than in connection with the bona fide negotiation of a collective bargaining agreement, any request by a food delivery platform to a worker to waive rights given by this chapter shall be a violation of this chapter.

(Ord. 1149 § 2, 2021)

Within 90 days of the expiration of the revised "Safer at Home" order issued on January 29, 2021 by the Los Angeles County Health Officer restricting indoor in-person dining at restaurants, the City Manager shall report to the City Council on the effectiveness of the provisions of this chapter, recommendations for additional protections that further the intent of this chapter, and whether the provisions of this chapter are still necessary based on the City's recovery from the impacts of the COVID-19 pandemic.

(Ord. 1149 § 2, 2021)

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City of Paramount, CA