TRENTON, NJ – Governor Phil Murphy signed legislation (S2437) Friday which limits service fees charged to restaurants by third-party delivery applications and websites during state of emergencies. The legislation provides relief to restaurants across New Jersey that have faced excessive fees while being limited to takeout and delivery service.

Both Jersey City and Hoboken were early adopters of local efforts to cap delivery fee and surcharges by food service delivery apps.

The legislation prohibits:

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  • 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. 
  • Restaurants from charging 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.

“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,” said Governor Phil Murphy.