Restaurants are increasingly adding new fees to customer bills, prompting legislative action in several states to ensure greater transparency. Florida is the latest state to implement stricter regulations, with Senate Bill 606 taking effect next week.
Florida's New Legislation
The new Florida law mandates that any public food service establishment charging an "operations charge" or including automatic gratuity must clearly display this information on its food menu, written contract, and website or mobile ordering platform. Furthermore, all receipts and bills must itemize gratuity, operations charges, and sales tax on separate lines. "Those who visit Florida’s dining establishments deserve the ability to see what they are paying for in an era where everything is being broken out into separate fees and charges," stated bill sponsor Sen. Thomas Leek.
This legislation comes after a Tampa restaurant, RO in Hyde Park, faced scrutiny for adding a 3% "venue fee" to a customer's bill without prior notification on its menu or at the establishment. The customer reported that restaurant staff claimed similar charges were becoming common practice at other local eateries.
Broader State-Level Efforts
Florida joins other states in cracking down on what are often termed "junk fees." California enacted its "Honest Pricing Law" in 2023, requiring most businesses to disclose all additional fees or charges when advertising prices. The law's intent is to ensure "the price a Californian sees should be the price they pay."
Illinois passed a bill banning junk fees and increasing transparency, particularly in ticket pricing and resale practices. As of January 1, 2027, Illinois restaurants will be required to display mandatory fees and automatic gratuities before a diner receives their check. Illinois Attorney General Kwame Raoul emphasized that "Illinois consumers deserve the ability to unambiguously compare prices on goods and services... They should not be blindsided by unexpected add-on fees."
New York City has also updated its local Restaurant Surcharge rules. These amendments require all restaurants to clarify the purpose of any legitimate service surcharges. Additionally, restaurants in New York City may add a mandatory tip or service charge, such as an 18% gratuity, but this charge must be clearly disclosed to the consumer and must be distributed to the employees. The amended law aims to balance consumer protection with worker compensation, allowing mandatory gratuities under specific disclosure circumstances.