Over the weekend, people were spotted crowding along Manhattan streets, in both the East Village and Hell's Kitchen, many of them not wearing masks.
It prompted a reaction from Governor Andrew Cuomo, and a pushback from New York City Mayor Bill de Blasio.
Governor Cuomo said there were thousands of complaints, leading him to threaten to revoke liquor licenses.
He also demanded local police get involved and threatened to shut down areas like Manhattan and the Hamptons.
Partygoers ignore social distancing guidelines in NYC
The mayor says the city is trying to balance safety with the need for these businesses to make money.
The city has been handing out masks and marking sidewalks with chalk to indicate 6 feet of distance.
But that didn't stop large crowds over the weekend.
Video from 9th Avenue in Hell's Kitchen and in the East Village showed people gathering outside restaurants, many without face coverings.
A city hall spokesperson said, "We don't believe imprisoning people or taking away their livelihood is the answer," adding that businesses are allowed to be open per the governor's guidelines.
Cuomo threatens loss of liquor licenses for bars that violate reopening
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