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S 4459

Relates to adding W-18 to the schedule of controlled substances

2025 Regular Session Introduced by James Skoufis

New Jersey would ban undisclosed mandatory gratuities, requiring prominent disclosure on menus, entrances, bills, and websites, with CFA penalties for noncompliance.

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Bill Summary · S 4459

Summary of New Jersey S 4459 (Introduced May 19, 2025)

Note: The bill text provided concerns mandatory gratuities disclosures, not the addition of W-18 to a controlled substances schedule. The summary below reflects the introduced content as published, including its purpose, provisions, and effects.

Overview

S 4459 would prohibit restaurants from charging a mandatory gratuity unless the gratuity is disclosed in a prominent manner at multiple consumer touchpoints. The bill frames undisclosed mandatory gratuities as an unlawful practice under the New Jersey Consumer Fraud Act (CFA), with specified penalties and enforcement options. The act would take effect three months after enactment.

Purpose and intent

  • To increase transparency around any mandatory gratuity charged by restaurants.
  • To protect consumers from deceptive practices related to tipping requirements.
  • To empower the Attorney General to enforce compliance and provide remedies to injured patrons.

Key provisions

  • Prohibition on undisclosed mandatory gratuities:
    • A restaurant may not charge a mandatory gratuity unless disclosure is provided in a prominent manner at:
    • The menu
    • The entrance of the restaurant
    • The patron’s bill -, if applicable, the restaurant’s website
  • Prominence requirement:
    • Each disclosure must be in a prominent manner, ensuring visibility to patrons.
  • Enforcement under the Consumer Fraud Act:
    • Violations are treated as unlawful practices under the CFA.
    • Penalties:
    • First offense: up to $10,000
    • Each subsequent offense: up to $20,000
    • Additional remedies:
    • Cease and desist orders issued by the Attorney General
    • Potential punitive damages
    • Potential treble damages (damages tripled) and costs to the injured party
  • Effective date:
    • The act would take effect on the first day of the third month after enactment.

Affected parties

  • Restaurants and other establishments that collect mandatory gratuities.
  • Patrons and consumers who pay gratuities.
  • Website operators for restaurants (if gratuities are disclosed on their sites).

Legislative history and status

  • Sponsor: James Skoufis (primary)
  • Introduced: May 19, 2025
  • Current status: Referred to Senate Commerce Committee
  • Related/companion bills:
    • A 5735 (companion)
    • A number of prior-session S and A bills listed as related or prior-session references (S 5112, S 5221, S 1774, A 7748, etc.)

Potential impact

  • Increase in restaurant compliance activity and disclosure obligations.
  • Strengthened consumer protections against hidden mandatory tipping.
  • Possible changes in pricing or tipping structures as restaurants adjust to disclosure requirements.
  • Compliance costs for updating menus, entrances, bills, and websites to ensure prominent disclosure.

If you’d like, I can add a side-by-side comparison with the companion bill (A 5735) or outline potential modeling of penalties under different enforcement scenarios.

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

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