SACRAMENTO, CA - As of July 1, a new law will be going into effect in California that states that businesses cannot add on fees beyond their listed prices. However, the updated S.B. 1524 bill allows restaurants to be exempt from the law.

“Restaurants are vital to the fabric of life in California, and they should be able to cover costs as long as they do so transparently,” said State Senator Scott Wiener, Democrat of San Francisco and a co-author of the new bill. “S.B. 1524 clarifies portions of the law that pose a serious threat to restaurants. The bill strikes the right balance between supporting restaurants and delivering transparency for consumers, and I’m proud to support it.”

According to a report from The New York Times, many restaurants add fees to the final bill. The fee may be used to fund employees’ health insurance plans, or a restaurant may charge a mandatory service fee. The law originally stated that this would be illegal in California.

However, State Senator Bill Dodd, Democrat of Napa and a co-author of the new law, returned to the Legislature with the new bill that exempts restaurants, bars, and other foodservice providers from the law, the news source stated. Under S.B. 1524, restaurants would be allowed to charge those fees as long as they are displayed “clearly and conspicuously” on the menu.

As we learn more about the situation, ANUK will be sure to report.