California Governor Newsom Enacts Law Allowing Restaurants and Bars to Implement Service Fees with Disclosure Requirements

Money | June 30, 2024, 4:34 a.m.

New legislation in California, Senate Bill 1524, allows restaurants to continue charging service fees, health costs, and other surcharges as long as they are clearly disclosed on menus and advertisements. This emergency measure exempts food and beverage vendors from a law targeting hidden fees, allowing them to maintain their current pricing structure. Advocates argue that these fees stabilize wages and help cover employee benefits, but critics fear they could mislead consumers. While some support the continuation of service fees, others are frustrated by the government's sudden change in policy. Despite the new law requiring transparent fee disclosure, some believe it does not go far enough in protecting consumers. The bill's passage has sparked debate and prompted discussions on the future of service charges in the restaurant industry.