, authored in June by Sen. Bill Dodd and Sen. Nancy Skinner , would have prohibited purported junk fees from a host of businesses including bars, delivery apps, travel, ticket sales, hotels and restaurants.
“Service charges have been increasingly common tools aimed at keeping restaurants afloat and able to pay the higher minimum wages, amid rapidly rising state and local minimum wage requirements,” the Employment Policies Institute, a nonprofit research organization studying employment growth,. “Since the state began annual wage hikes up to $16.50 per hour starting in 2017, and localities raised wages even higher, California restaurants have suffered significant losses.
With Saturday’s signing “we can uphold the principle of providing consumers with up-front price transparency without inadvertently harming food service workers or small businesses,” wrote Sen. Dodd shortly after Gov. Newsom’s approval,The iconic Caesar salad turns 100. Do you know its origin story? Under the new law, which went into effect immediately on Monday, July 1, if a restaurant adds a service fee to the bill, it must be clearly stated on the menu and, according to Sen. Dodd, “cannot be a surprise that only shows up when the bill arrives.”
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