Controversial Tipping Law Causing Debate Across New York State

A new tipping law is stirring debate from Manhattan to across the Hudson Valley.

New York’s Controversial Tipping Law Kicks In, Changing How Delivery Apps Ask for Gratuity

A major change in how delivery apps handle gratuity is in effect in New York City.

Under the new law, major food and grocery delivery platforms like Uber Eats, DoorDash, and Grubhub must now display a tipping option to customers at the time of checkout, with a default suggested tip of 10 percent.

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The idea is to make tipping easier and more transparent for customers and to boost earnings for delivery workers who rely on gratuities.

The delivery platforms unsuccessfully tried to block the new rule in court.

Supporters say the update helps undo a trend that developed after New York’s minimum pay laws for delivery workers took effect.

Adding the law simply restores common-sense tipping practices and puts more money in workers’ pockets.

In late 2023, several apps removed the tip prompt from the checkout screen, moving it to an optional page after orders were placed.

That shift dramatically lowered tips. One report said city delivery workers missed out on as much as hundreds of millions of dollars in gratuities as a result.

The delivery companies argue the new law could backfire, leading to fewer orders, higher delivery fees, and even a potential drop in overall tipping because customers might balk at what they see on the checkout screen.

Workers throughout the Hudson Valley are eligible for the new statewide tax deduction on tips. Starting in the 2026 tax year, you can deduct up to $25,000 of tipped income from your New York State taxes

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