California Restaurants Retain Right to Charge Service Fees Under New Law

Governor Newsom signs emergency bill allowing clearly disclosed surcharges to continue, averting a ban set for July 1.

Senate Bill 1524 permits restaurants to add service fees if transparently listed on menus and advertisements.
The new law exempts food service businesses from Senate Bill 478, which would have outlawed such fees.
Supporters argue the fees help balance wages and cover health costs for restaurant staff.
Critics claim the surcharges can confuse diners and obscure true meal costs.
Some diners express frustration and may alter their dining habits in response to the continued fees.