Gov. Newsom signs new law: Restaurants and bars can continue to charge service fees, if posted
How do service fees help stabilize wages in restaurants?
Service fees in restaurants help stabilize wages by providing a consistent source of additional income for employees. They can be used to supplement the wages of all staff members, including kitchen staff and other non-tipped employees who typically do not receive tips. This allows for more equitable distribution of earnings and can help offset the costs of employee benefits such as healthcare.
Which industries does Senate Bill 478 primarily target?
Senate Bill 478 primarily targets industries such as ticket sellers, hotel and travel websites, and other businesses that charge hidden or junk fees. It aims to promote price transparency and protect consumers from misleading advertising practices.
How might SB 1524 affect restaurant employment and operations?
SB 1524 allows California restaurants to continue charging service fees if they are clearly displayed for diners. This practice helps cover operational costs and stabilize wages across dining rooms and kitchens. By signing the bill into law, Governor Newsom addresses concerns from the hospitality industry and provides clarity on the legality of service fees. The transparency provided by the bill benefits both consumers and restaurants, enabling informed choices and supporting restaurant operations.