Florida Enacts Law Mandating Transparency In Restaurant Service Charges

Tip jar

Photo: Tetra Images / Tetra images / Getty Images

FLORIDA - Florida restaurants will be required to clearly disclose any automatic service charges or gratuities to customers, following the signing of Senate Bill 606 by Governor Ron DeSantis on June 2nd.

This legislation aims to enhance transparency in billing practices within the state's hospitality industry.

Under the new law, public food service establishments that impose automatic fees, referred to as "operations charges," must provide conspicuous notices on menus, websites, and mobile applications where orders are placed.

For establishments without traditional menus or table service, such as fast-casual or take-out venues, the law mandates that fee disclosures be prominently displayed on menu boards or signage at the point of payment .

Additionally, customer receipts must itemize charges, distinctly separating the cost of food and beverages from operations charges, gratuities, and taxes.

This measure seeks to eliminate confusion over billing and ensure that patrons are fully informed about the components of their total charges .

The impetus for this legislation stemmed from concerns over unclear billing practices in the restaurant industry.

State Representative Demi Busatta Cabrera, a Republican from Coral Gables with a background in the restaurant sector, highlighted instances where customers received bills including both a service fee and a pre-set gratuity, along with an additional line for tips.

She noted that in Miami, it's common for restaurants to automatically add a 20% gratuity to bills, not only for dine-in services but also for take-out orders at fast-casual establishments .

The Florida Restaurant and Lodging Association (FRLA) has expressed support for the legislation, viewing it as a step toward greater transparency and consumer trust.

FRLA President and CEO Carol Dover stated that the law "brings our laws in line with current practices, offers clear guidance, and supports both property rights and consumer understanding."

While the broader aspects of SB 606, including provisions related to hotel guest removals, take effect on July 1st, the specific requirements for disclosing automatic service fees in restaurants will become enforceable starting July 1st, 2026.


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