I’m not allowed in.
The state gave restaurants a brief reprieve from the law.
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>>>California lawmakers have given restaurants a last-minute exemption from a statewide law that takes effect July 1 and bans hidden or “junk” fees on goods and services, including hotel rooms, car rentals and event tickets.
That law, Senate Bill 478, would have prohibited restaurants, bars and other food vendors from adding service fees and other surcharges to bills, but on Thursday, the state Senate unanimously approved an emergency measure that would allow restaurants to continue charging the fees. If signed by Gov. Gavin Newsom, Senate Bill 1524 would take effect immediately.
While supporters of the junk fees bill maintain it will help protect consumers from unexpected expenses, many in the restaurant industry have taken exception with the new law, which they say shouldn’t apply to them.
Restaurateurs argue that service fees and surcharges, usually 3-6% of the final bill but sometimes as much as 20%, are necessary to supplement wages for workers, such as cooks, dishwashers and other staff who don’t receive tips and other gratuities.
“Today we take an important step toward providing consumers with upfront price transparency without inadvertently harming food service workers or small businesses,” said Sen. Bill Dodd, D-Napa, who proposed the SB 1524 carveout for restaurants.
The new bill would require that any fees, including mandatory gratuity, are “displayed conspicuously on restaurant menus,” according to a news release from Sen. Dodd’s office.
In Sonoma County, many restaurant owners and workers have anxiously been awaiting July 1.
On Thursday, some restaurateurs breathed a sigh of relief, saying that restaurant fees are critical to their businesses at a time when prices of raw ingredients continue to soar, staffing remains a challenge, and margins are thinner than ever.
Meanwhile, a few have already opted to forgo surcharges altogether, as well as tipping, with menu prices that include everything except sales tax.
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