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SF 258

Nongratuity surcharges at restaurants prohibition

2025-2026 Regular Session Introduced by Matt Klein and 1 co-sponsor

Minnesota bill SF 258 prohibits restaurants from charging undisclosed surcharges, requiring explicit upfront consent and establishing penalties to prevent hidden fee practices.

Author added Klein
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WeVote Research Nonpartisan
Bill Summary · SF 258

Legislative bill overview

SF 258 prohibits restaurants from charging nongratuity surcharges (such as "service charges," "facility fees," or "administrative fees") to customers without explicit disclosure and consent. The bill establishes requirements for how and when such charges can be imposed, and creates penalties for violations.

Why is this important

Surcharges added to bills without clear upfront disclosure have become increasingly common in the restaurant industry, raising bills unexpectedly and creating consumer confusion about actual costs. This bill directly addresses consumer protection by requiring transparency and preventing hidden fees that inflate final prices beyond what customers anticipated.

Potential points of contention

  • Business flexibility vs. consumer protection: Restaurants argue surcharges help offset rising labor and operational costs; consumer advocates say they obscure true pricing and violate consumer trust
  • Definition scope: Unclear whether the prohibition covers all mandatory fees or allows certain categories (e.g., large party automatic gratuities), which could create implementation disputes
  • Economic impact: Restaurants may argue restrictions limit their pricing strategies during inflationary periods, potentially affecting wage structure flexibility or small business viability

Compiled from official sources — confirm details with the bill’s official record.

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