California Governor Newsom Approves Legislation Allowing Restaurants and Bars to Maintain Service Fees - Must be Clearly Displayed

Money | June 29, 2024, 8:04 p.m.

California restaurants and bars can continue charging service fees and surcharges, thanks to Gov. Gavin Newsom signing an emergency measure, Senate Bill 1524. With bipartisan support, the law exempts food and beverage vendors from a previous ban targeting hidden fees. Prior to this, restaurants faced legal action if surcharges were not included in menu prices. The passing of SB 1524 is a relief for struggling businesses, as it allows them to stabilize employee wages and benefits. Industry advocates argue that service fees are necessary for survival in a challenging environment. While the bill requires clear disclosure of fees on menus, some consumers are skeptical, with concerns over transparency and comparisons. Despite backlash on social media, the law’s proponents believe it is a step in the right direction for informed consumer choices in dining establishments.