New Jersey Limits Third Party Restaurant Delivery Fees

Governor Phil Murphy has signed legislation that limits service fees on restaurants by third-party delivery apps during state of emergencies in New Jersey.

“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 apps — like DoorDash, Uber Eats, Postmates – from charging service fees greater than 20% (or 10% when the order is delivered by a restaurant employee or an independent contractor they’ve contracted directly).


Many of these apps have been charging restaurants anywhere from 15-30% per order — there’s also delivery fees and services fees paid by the customer — limiting restaurants the ability to make money on these orders. Pre COVID-19, many of these companies themselves where having troubles of their own.

The limits will stay in effect until certain time and service changes in regards to the current shutdown orders have been met.


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