USA | A California Senator's legislation will have benefits for restaurantgoers.
Senator Bill Dodd, D-Napa, has introduced legislation to strengthen consumer protection for California restaurant patrons by clarifying state laws on the disclosure of hidden fees and service charges.
“Restaurant customers shouldn't be caught off guard by unexpected extra charges on their bills,” said Sen. Dodd.
“While many restaurants are transparent with their pricing, too many are not. This proposal will create a fairer environment and resolve confusion about what is permissible under state law.”
Last year, Governor Gavin Newsom signed Sen. Dodd’s Senate Bill 478, prohibiting businesses from adding undisclosed fees at the end of transactions. The law takes effect on July 1.
To address how the new law applies to restaurant charges, Sen. Dodd is introducing an urgency measure, Senate Bill 1524, which could be adopted within the next month. The proposal stipulates that any mandatory gratuity, service charge, or other fees imposed by restaurants must be prominently displayed on menus.
SB 1524 is co-authored by Sen. Scott Wiener, D-San Francisco, and Assembly members Jesse Gabriel, D-Encino; Cecilia Aguiar-Curry, D-Winters; and Matt Haney, D-San Francisco. It is supported by the California Restaurant Association and the Unite Here labour union.
“Restaurants are essential to life in California, and they should be able to cover costs transparently,” said Sen. Wiener.
“SB 1524 clarifies parts of the law that could threaten restaurants. The bill supports restaurants and ensures transparency for consumers.”
“The California Restaurant Association strongly supports SB 1524, which will allow restaurants to impose service charges, mandatory gratuities, and other common menu charges, provided they are clearly disclosed in advance,” said Matthew Sutton of the California Restaurant Association.
“This will enable restaurants to support pay equity and contribute to worker health care and other benefits. Importantly, consumers will be able to make informed choices about where to dine. We are pleased to join Unite HERE in supporting this measure.”
“Reducing the pay of banquet servers and ballpark workers was never the intention of SB 478,” said Mario Yedidia, western political director for UNITE HERE.
“UNITE HERE is proud to co-sponsor this amendment and to protect and improve standards for hotel, food service, and casino workers across California.”
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