Bill
HB 852
HB 852 limits mandatory service charges in restaurants for large parties, ensuring consumers are notified and charges are clearly itemized, promoting transparency and fairness.
Bill Number: HB 852
Title: Relating to Service Charges
Status: Introduced and Pass First Reading
Introduced Date: January 21, 2025
Classification: Bill
Subject: Limit, Mandatory Gratuity Service Charge, Notification, Party Size, Restaurants
HB 852 aims to regulate the imposition of service charges in restaurants, particularly focusing on mandatory gratuity service charges based on party size. The bill seeks to enhance transparency and protect consumers from unexpected charges.
The primary intent of HB 852 is to:
- Limit the use of mandatory gratuity service charges in restaurants, particularly for larger parties.
- Ensure that consumers are adequately notified about any service charges that may be applied to their bills.
This legislation is designed to promote fairness in dining experiences and to provide clarity for patrons regarding additional costs associated with their meals.
The bill includes several significant provisions:
- Mandatory Gratuity Limitations: Establishes restrictions on when and how mandatory gratuity service charges can be applied, particularly for groups of a specified size (e.g., parties of six or more).
- Notification Requirements: Requires restaurants to clearly inform customers about any service charges before they place their orders or at the time of seating.
- Transparency Measures: Mandates that any service charge must be itemized on the bill, allowing customers to see exactly what they are being charged for.
The bill primarily affects:
- Restaurants: They will need to adjust their billing practices to comply with the new regulations regarding service charges.
- Consumers: Diners will benefit from increased transparency and clarity regarding additional charges, helping them make informed decisions when dining out.
HB 852 has a companion bill, SB 1256, which addresses similar issues regarding service charges in restaurants. The relationship between the two bills may lead to coordinated legislative efforts.
HB 852 represents a significant step towards enhancing consumer protection in the dining industry by regulating mandatory service charges. By ensuring that customers are informed and that charges are transparent, the bill aims to foster a fairer dining environment. As the bill progresses through the legislative process, its implications for both restaurants and consumers will continue to be closely monitored.
Compiled from official sources — confirm details with the bill’s official record.
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