New California law will ban restaurant surcharges on customer bills, other fees

Starting July 1, California will enforce a new law, SB478, that prohibits restaurants from adding service charges to bills, mandating that all costs be included in menu prices. This measure, part of a broader initiative against hidden fees across various industries, aims to enhance pricing transparency for consumers. However, the California Restaurant Association has expressed concerns that this law might lead to higher consumer prices and reduced employee wages, indicating potential negative impacts on the state's restaurant industry.