New Bill Allows California Restaurants to Keep Service Fees with Clear Disclosure

Senate Bill 1524 aims to clarify existing law by permitting restaurants to add surcharges if they are prominently displayed on menus.

The bill is a response to confusion over a law banning hidden fees set to take effect July 1.
Restaurants can include service charges and mandatory gratuities as long as they are clearly listed.
The California Restaurant Association and labor unions support the bill for maintaining pay equity and worker benefits.
Critics argue that fees should be included in menu prices to avoid consumer confusion.
The bill aims to balance transparency for consumers with financial viability for restaurants.