Understanding California Restaurant Service Fees: What You Need to Know
Money | July 2, 2024, 6:45 a.m.
California restaurants can now keep surcharges, but a new law mandates transparency for customers. Gavin Newsom signed SB 1524 into law, requiring restaurants to disclose mandatory fees and charges with an explanation of their purpose on all displays. This law, effective Monday, clarifies language on restaurant pricing and builds on a previous bill that prohibits undisclosed fees at the end of transactions. Sen. Bill Dodd introduced the bill alongside Sen. Nancy Skinner to address hidden charges in transactions that cost California consumers billions. Sen. Scott Wiener emphasized the importance of transparently covering costs for restaurants while ensuring consumers are informed. The law aims to strike a balance between supporting restaurants and providing transparency for customers.