The Massachusetts legislature on Tuesday approved a temporary cap on the fees delivery providers charge restaurants, part of a $626 million economic development bill intended to help businesses during the pandemic.
If Gov. Charlie Baker signs off on the package, Massachusetts would become just the third state with a delivery fee cap, joining Washington and Oregon. Similar measures are in place in dozens of cities and counties throughout the U.S.
Massachusetts’ measure would limit delivery fees to 15% of the order total. It applies to restaurants with fewer than 25 locations and will last until the COVID-19 state of emergency has ended.
The economic development bill also includes $20 million to go toward struggling restaurants.
Independent restaurant group Massachusetts Restaurants United praised the move. “We thank all those who came together to secure this unprecedented support in our hour of need,” it said in a statement.
The caps have seen strong support from restaurants, which have bridled against delivery fees and commissions that can exceed 30% of an order total. But delivery companies have said they will hurt restaurants because costs will have to be passed to the consumer. DoorDash has begun adding $1-$2 fees for diners in many markets where delivery caps are in place.