Thanks to an emergency bill introduced by the lawmaker behind the law banning 'junk fees,' California exempts the restaurant industry from the ban on surcharges. The exception under SB-1524 allows restaurants to transparently continue charging surcharges as long as they are disclosed on menus.
Senator Bill Dodd introduced SB-1524 as a response to the restaurant industry's concerns about the law banning 'junk fees.' Co-authored by Senator Scott Wiener, the bill aims to support restaurants in covering costs transparently while maintaining consumer transparency.
Wiener stated, 'Restaurants are vital to the fabric of life in California...SB 1524 clarifies portions of the law that pose a serious threat to restaurants, striking a balance between restaurant support and consumer transparency.' The bill was signed into law to address industry challenges.
The law banning 'junk fees' in California, including surcharges on restaurant checks in San Francisco, caused a backlash due to additional costs incurred by restaurants. SB-1524 provides restaurants with the flexibility to charge such fees transparently, acknowledging operational challenges faced by the industry.
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