New California Law Bans Junk Fees and Restaurant Surcharges

Published on May 8, 2024

Starting July 1, a new law will forbid California restaurants from incorporating service fees into bills. Aimed at eliminating the practice adopted by numerous eateries to bolster wages in place of conventional tipping, the law marks a significant change in the state’s dining landscape. Attorney General Rob Bonta, along with the California Low-Income Consumer Coalition, co-sponsored SB 478, which was authored by Senators Bill Dodd and Nancy Skinner. “These deceptive fees prevent us from knowing how much we will be charged at the outset. They are bad for consumers and bad for competition,” Mr. Bonta said in a news release last October after Mr. Newsom signed the bill into law....

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