Chapter 5.11
DELIVERY DRIVER TIPPING*
Sections:
5.11.020 Tipping option requirement.
* Editor’s Note: Pursuant to Section 6 of Ordinance No. 2023-13, this chapter shall be effective June 9, 2024.
5.11.010 DEFINITIONS.
(a) “Delivery company” shall refer to parcel delivery services engaged in the business of shipping and/or delivering a minimum average of twenty-five packages per week to customers at residential addresses within the city of Santa Cruz.
(b) “Delivery driver” shall refer to an individual employed by a delivery company for the purpose of delivering goods or packages to customers at residential addresses.
(Ord. 2023-13 § 1, 2023).
5.11.020 TIPPING OPTION REQUIREMENT.
(a) All delivery companies, as defined in Section 5.11.010, operating within the city of Santa Cruz shall offer a tipping option to their customers, either through their website, mobile application, or other means of electronic communication. Companies engaged in the shipping or delivery of products or packages on their own behalf or on behalf of third parties from the point of origin to the final residential destination shall, jointly and severally, be responsible for compliance with this chapter, including but not limited to third-party contractors such as, for example, Amazon Delivery Service Partners.
(b) The tipping option shall be prominently displayed and easily accessible to the customer by one or more mechanisms that may include, but are not limited to, any of the following:
1. During the checkout or order placement process;
2. Through a hyperlink in an SMS or email notifying the customer of the delivery status;
3. On printed material affixed to the delivery box or within the package with instructions on how to leave a tip;
4. On an order/delivery tracking page that a customer has access to; or
5. A generally available website that customers are directed to at which a tip can be given for a specific delivery by providing a tracking number or other unique identifier to the delivery company. This website must be easily accessible and discoverable such as, for example, by including its web address and instructions on the delivery company’s packing label.
(Ord. 2024-02 § 1, 2024; Ord. 2023-13 § 1, 2023).
5.11.030 EXCEPTIONS.
(a) This chapter shall not apply to:
1. Delivery companies with six or fewer employees;
2. Delivery drivers who are independent contractors;
3. Delivery companies or delivery drivers who engage in regular face-to-face interactions with customers including, but not limited to, furniture and appliance deliveries, service calls, installation services and similar transactions;
4. Delivery companies or delivery drivers who are subject to a valid collective bargaining agreement;
5. The United States Postal Service; or
6. Business-to-business deliveries;
7. Delivery companies or delivery drivers who are engaged in interstate commerce;
8. Any motor carrier holding interstate for hire motor carrier operating authority from the Federal Motor Carrier Safety Administration or any federally certificated air carrier operating under authority granted by the Federal Aviation Administration.
(b) The exceptions in subsection (a) shall not apply to delivery companies that both process consumer goods orders and arrange for transportation in a single transaction.
(Ord. 2024-02 § 1, 2024; Ord. 2023-13 § 1, 2023).
5.11.040 CIVIL ENFORCEMENT.
(a) Any aggrieved person may enforce the provisions of this chapter in a civil action filed in Santa Cruz superior court for injunctive relief and damages.
(b) Any person who violates any provision of this chapter or who aids in such a violation is liable for each violation. Whoever is found to have violated this chapter shall be subject to appropriate injunctive relief and shall be liable for one hundred dollars per day per driver in damages, plus costs and reasonable attorney’s fees as determined by the court.
(c) Any person who commits, or proposes to commit, an act in violation of this chapter may be enjoined therefrom by any court of competent jurisdiction. An action for equitable relief under this subsection may be brought by any aggrieved person.
(d) In any civil action brought pursuant to this chapter, it shall be an affirmative defense if the defendant delivery company establishes that the failure to comply was due to short-term technical outages (malfunctions, outages, or integration issues) that prevented the option to tip from being delivered to customers, provided such outage was resolved within five business days, and the delivery company has otherwise made good faith efforts to maintain the tipping service generally.
(Ord. 2023-13 § 1, 2023).