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SPECIAL SURCHARGES TO BECOME ILLEGAL IN CALIFORNIA RESTAURANTS

By Tom Vacar
Published  May 1, 2024 7:55pm PDT
Restaurants
KTVU FOX 2

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CALIFORNIA RESTAURANT SURCHARGES WILL CHANGE IN JULY

As of July 1, it will be illegal for any restaurant in the Golden State to add
special surcharges to diners' checks, which has become a favorite method that
restaurants use to lower costs and enhance employee incomes.

WALNUT CREEK, Calif. - As of July 1, it will be illegal for any restaurant in
the Golden State to add special surcharges to diners' checks, which has become a
favorite method that restaurants use to lower costs and enhance employee
incomes. 

Except for taxes, the surcharge disclosure law applies to all imposed add-on
fees such as service fees, dining-in charges, delivery charges, credit card
processing fees, and even imposed tips. But this is not crystal clear.





Attorney General Rob Bonta, who had previously said restaurants would be allowed
to make surcharges, says they must be disclosed in advertising, which,
presumably includes menus. 

However, the California Restaurant Association, is ready to fight back, saying
that the written law only applies to advertisements because courts have ruled
that "advertisements" for goods and services do not include menus.



In Walnut Creek, many people dining out had essentially the same opinion. "Yeah,
it needs to be in the price of the food. It might help somebody decide on a menu
item," said Susan Bomba,

If this bundling happens, don't expect the price of dining to decline. In fact,
expect them to rise sharply. 

"Seeing the fee, we know about it and, I guess, if you eat somewhere long enough
and you see those prices raised, you know that's where those fees went," said
Dana Barry.

In fact, many folks think tipping, fees and surcharges are way out of control
now. 

"I absolutely agree with that. Like I said, I've been to restaurants before and
put a nice tip down and then realized later, the tip was included or something
else," said Bob Kennedy. 

"They shouldn't be tipping on those fees," said Dana Barry. "Now, for a
carry-out, you're expected to tip. That was never the case. I didn't mind it
during Covid, but now we're back to something normal, we're still expected to
tip for carry-out food," said Bomba.

Restaurant owners say they need clarity and specific answers soon, given that
these rules take effect in just 60 days.
 




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