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Bill

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Bill

A 5735

Requires restaurant to disclose mandatory gratuity to patrons.*

2024-2025 Regular Session Introduced by Dan Hutchison and 5 co-sponsors

Requires New Jersey restaurants to clearly disclose mandatory gratuity charges to customers before purchase, ensuring transparency and informed dining decisions.

Passed Assembly (67-2-1)
#consumerpro
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Bill Summary · A 5735

Legislative bill overview

Bill A 5735 requires New Jersey restaurants to clearly disclose any mandatory gratuity charges to patrons before they complete their transaction. The bill aims to ensure transparency in billing practices by mandating that restaurants inform customers of automatic tip additions on their bills upfront rather than as a surprise charge.

Why is this important

Mandatory gratuities have become increasingly common at restaurants, particularly for large parties or at upscale establishments, but customers often discover these charges only after ordering or receiving their bill. This disclosure requirement protects consumers from unexpected fees and gives them the ability to make informed decisions about where to dine and what they'll actually pay.

Potential points of contention

  • Implementation burden: Restaurants may argue the requirement creates administrative costs to modify menus, signage, point-of-sale systems, and staff training protocols across their operations
  • Gratuity policy restrictions: Some in the hospitality industry may view mandatory disclosure as a step toward restricting their ability to set gratuity policies, potentially affecting their labor cost management
  • Definition ambiguity: The bill's specific language on how and when disclosure must occur (menu, verbal, receipt, etc.) could create compliance confusion and disputes about adequate notice

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

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