California Assembly Passes Bill Allowing Transparent Restaurant Service Fees

New emergency measure exempts restaurants from a statewide ban on hidden fees, pending Senate approval and Governor's signature.

Senate Bill 1524 clarifies the original law banning hidden fees, allowing restaurants to charge service fees if clearly listed on menus.
The bill passed unanimously in the Assembly and now heads to the Senate for a vote.
Restaurateurs argue that rolling service fees into menu prices would cause sticker shock and harm businesses.
The original law, Senate Bill 478, aimed to protect consumers from undisclosed charges across various industries.
If signed into law, the new measure will take effect immediately, ensuring price transparency while supporting restaurant operations.