What does a service fee ban mean for diners? Expect that $39 chicken to cost $49

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A state 'junk fees' law might 'upend' how restaurants operate. Customers could face sticker shock when fees are rolled into menu prices.

Coming this summer is a new state law that bans unadvertised service fees, surcharges and other additional costs that are added to the end of a bill for meals or delivery service. On July 1, Senate Bill 478, which Gov. Gavin Newsom signed into law in October, is set to prohibit “junk fees” across a wide swath of businesses, including online ticket sales, hotels, restaurants, bars and delivery apps. Sens.

' Service fees have become a point of contention for diners, food workers and restaurant owners. In June, former servers at Jon & Vinny’s, a popular Italian American restaurant, filed a class-action lawsuit in Los Angeles Superior Court against its owners, Jon Shook and Vinny Dotolo, alleging that their company denied servers tips, resulting in a reduction of take-home pay, due to diner confusion regarding an 18% service fee.

Source: Law Daily Report (lawdailyreport.net)

 

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