Restaurants could continue to charge service fees. Emergency measure clears hurdle

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A new law is set to ban service charges and other 'hidden fees' July 1. But Senate Bill 1524 could immediately carve out an exception for the state's restaurants and bars, if passed.

California restaurateurs are counting the days to July 1, when a statewide law is set to ban restaurants, bars, hotels, concert venues and other businesses from charging service fees — sending the hospitality industry into a tailspin. But a new emergency measure unanimously approved by the state Assembly on Tuesday could exempt restaurants and bars from the law if signed by Gov. Gavin Newsom. Signed into law last October, Senate Bill 478 prohibits “hidden fees” such as service charges.

It is co-authored by Sen. Scott Wiener and Assemblymembers Matt Haney , Jesse Gabriel and Cecilia Aguiar-Curry . “This measure has enjoyed unanimous bipartisan support, and recent amendments have responded to concerns from some consumer groups,” Haney said in an address to the Assembly on Tuesday. It passed unanimously with 79 votes. In February a representative for Atty. Gen.

 

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