New York Proposes Legislation Mandating Cash Payments in Retail and Food-Service Establishments
NEW YORK, NY—A proposed law in New York would mandate that food service and retail establishments accept cash as payment and impose civil fines on businesses that refuse cash transactions.
The legislation, introduced by New York Assemblyman Nader Sayegh, has been processed through various legislative stages, including referral to the Committee on Consumer Affairs and Protection. It specifies that both food-service and retail sectors must not enact cashless policies. Violations of this law could result in fines up to $2,500 for the first offense and up to $5,000 for subsequent offenses.
The amendment to the general business law introduces Section 396-ii, detailing the prohibition of cashless operations. The Department of Labor is tasked with developing necessary regulations to enforce this policy. This act underscores New York’s commitment to consumer protection and accessibility in commercial transactions.
Many restaurants in New York, including some very famous and popular spots in New York City operate cash only, but a recent trend since COVID-19 has seen many businesses refusing cash sales.