New York City Council's Proposed Bill to Put Delivery Services Out of Business

NEW YORK, April. 27, 2020 /PRNewswire/ -- A proposed New York City Council bill will put a $2 million annual burden on many of the small businesses that New Yorkers depend upon for the home deliveries of their groceries, medications, and other essentials during New York's stay-at-home restrictions. The bill includes a provision that would require these small delivery companies to pay their delivery people bonuses for working during the city's state of emergency. This burden could amount to $2 million annually or more per 100 full time employees working a 5-day work week.

"This provision is essentially a death sentence for the companies that New Yorkers depend upon to get the essentials to their doors," says John V. Rutigliano, President of the New York State Messenger Courier Association (NYSMCA) "Our members are small businesses that simply can't sustain these added gross payroll costs. I have no doubt that most will simply go out of business when saddled with that burden."

The proposed bill would require employers with 100 or more employees to pay hourly workers $30 for a shift under four hours, $60 for a shift of four to eight hours and $75 dollars for any shift over eight hours. "For a courier company that uses 100 delivery people for eight hours a day, that's an added $6000 a day plus related payroll taxes in overhead that they simply can't sustain," he says.

"Our people have kept home-bound New Yorkers out of the supermarkets and drug stores. They have brought food and medicine to those who are elderly, pregnant and taking care of young children. They deliver facemasks, gowns and gloves to medical professionals.  They have done their jobs with dedication and to propose something that would destroy their employers and put them out of work is unconscionable," says Rutigliano.

He urged the City Council to consider the human and financial cost of putting these small delivery companies out of work before passing this legislation.  "It's our job to keep the wheels of commerce running, no matter what the circumstances," he said. "If you saddle these small businesses with this kind of additional overhead in an already precarious financial times, you can expect everyone who depends upon them to suffer."

About the New York State Messenger Courier Association
The New York State Messenger and Courier Association (NYSMCA) is a non-profit association that is working to advance the interests of the messenger and courier industry in the state of New York. Since 1945, the NYSMCA has promoted the professionalism of the industry through advocacy, networking and education. We provide information and leadership on business and regulatory issues affecting messenger and courier companies and we further the common interests of our member companies.

SOURCE New York State Messenger Courier Association