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Restaurant Service Fees Will Soon Be Illegal in California
The price you see on the menu is what you’ll pay for your meal (plus taxes) under a state law that has the restaurant industry fuming.
From automatic service charges to vague “living wage” fees, California restaurants have increasingly been tacking on extra costs to diners’ bills in recent years, much to customers’ chagrin. But starting later this year, that practice will become illegal — the menu price (plus tax) is all you’ll have to pay.
Signed into law by Gov. Gavin Newsom in October and set to take effect July 1, SB 478 will prohibit hidden fees, defined by state officials as fees in which a seller uses an artificially low advertised price to attract a customer, disclosing additional required fees in fine print or tacking on unavoidable charges later in the buying process.