News & Analysis as of

Fees Restaurant Industry

Vondran Legal

Netflix gearing up to stop streaming copyright piracy in upcoming Tyson vs. Jake Paul fight

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Ladies and gentlemen, hold onto your cocktails and nachos, because we might just witness one of the wildest boxing events in recent history: Mike Tyson versus Jake Paul! Yes, you heard it right. Iron Mike, the baddest man on...more

Littler

New Amendments to California Bill Clarify Scope of Prohibition on Junk Fees for Restaurant Industry

Littler on

On June 29, 2024, Governor Newsom signed into law an amendment to California Code 1770, clarifying the scope of SB 478. Under SB 478 and previously published guidance from the attorney general, California restaurants were...more

Fenwick & West LLP

California’s Hidden Fee Ban: FAQs and Guidance

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On July 1, 2024, California’s law banning hidden fees took effect. Under the Consumer Legal Remedies Act (CLRA), SB 478 provides that businesses transacting with California consumers may not apply additional fees or charges...more

Ervin Cohen & Jessup LLP

Governor Signs Law Exempting Restaurants From New Hidden Fees Law

Over the weekend, Governor Newsom signed Senate Bill 1524 into law, an emergency provision clarifying that Senate Bill 478, the “hidden fees” law that went into effect this week, will not apply to restaurants, bar, food...more

BCLP

California Ban on Hidden Fees to Take Effect; Restaurant Exception Passes

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A new California law that prohibits charging hidden fees for goods and services takes effect on July 1. After that date, all fees, with a few limited exceptions, must be disclosed at the outset of a consumer transaction and...more

BakerHostetler

California’s SB 1524 Seeks to Exempt Restaurants from Forthcoming Hidden Fee Ban

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On July 1, California Senate Bill 478 (SB 478) will take effect. Enacted to augment the Consumer Legal Remedies Act’s ban on certain deceptive advertising practices, this measure seeks to address the growing prevalence of...more

Stokes Wagner

California Senate Considering Surprise Amendment to Junk Fee Bill

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After months of stress due to ambiguities in California’s “Hidden Fees Statute,” colloquially known as the “Junk Fee Ban,” it seems the collective outcry from the hospitality industry has finally been heard. Yesterday,...more

BakerHostetler

Minnesota Passes Junk Fee Law and California Issues FAQs

BakerHostetler on

It seems it’s not only the Biden administration that believes regulating “junk fees” is popular with voters. Minnesota joins California as states that have passed their own junk fee legislation. And given the number of other...more

Fox Rothschild LLP

Emergency Bill Introduced to Change Junk Fees

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Yesterday, Senator Bill Dodd, D-Napa, introduced Senate Bill 1524 which would keep restaurant fees legal so long as they present additional fees “clearly and conspicuously.” This bill would amend Senate Bill 478, detailed...more

BakerHostetler

The Office of the Attorney General Issues Guidance on SB 478 - California’s Honest Pricing Law

BakerHostetler on

As noted in our recent client alert and blog, many legal commentators and those in the business community speculated that the California Department of Justice, Office of the Attorney General would issue guidance on SB 478. On...more

Littler

California Restaurants Must Identify Service Fees as Part of Listed Prices

Littler on

California’s Department of Justice recently confirmed that California’s new law requiring businesses to disclose “junk fees” as part of the advertised price extends to California restaurants, delivering another challenge to a...more

Stokes Wagner

The Legal Menu: California Attorney General Issues FAQs on Junk Fee Ban

Stokes Wagner on

Wednesday saw the release of CA Attorney General Bob Bonta’s long-awaited FAQs on the California “junk fee” ban, now rebranded as the “Honest Pricing Law” or “Hidden Fees Statute.” The FAQs largely reiterate the very...more

Parker Poe Adams & Bernstein LLP

Eleventh Circuit Confirms That Service Charges Are Not FLSA Tips

The tip wars between hospitality employers and employees continue unabated. Numerous lawsuits contend that restaurants and other employers wrongfully retain or require sharing of customer gratuities, as well as violate Fair...more

BakerHostetler

California’s Junk Fee Law and Restaurants

BakerHostetler on

California’s new junk fee law is set to come into effect July 1. As a refresher, the law prohibits “advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges.”...more

Ervin Cohen & Jessup LLP

Los Angeles County Sues Grubhub for Unfair Business Practices and False Advertising

On February 21, 2024, Los Angeles County filed a complaint for injunctive relief and damages against Grubhub alleging that the company engaged in false and deceptive advertising and unfair business practices that harm...more

Troutman Pepper

DC OAG Issues Guidance on Restaurant Fee Disclosures

Troutman Pepper on

On August 9, District of Columbia Attorney General Brian L. Schwalb issued a Supplemental Business Advisory regarding restaurants’ obligation to properly disclose service fees and charges to diners. The advisory comes after...more

Fox Rothschild LLP

Service Charge vs. Gratuity and Why It Matters Revisited

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Back in 2019, I posted about the difference between a Service Charge, an Automatic Gratuity, and a Gratuity/Tip. I explained that a service charge is typically a set amount added to a guest check in lieu of a tip. An...more

Troutman Pepper

District of Columbia AG Issues Supplemental Business Advisory on Restaurant Fees

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In August, District of Columbia Attorney General (AG) Brian Schwalb issued a Supplemental Business Advisory (advisory) to provide guidance and examples to restaurants for complying with their legal obligation under the...more

Faegre Drinker Biddle & Reath LLP

State AG Updates: Florida, New York, Arkansas, Multistate Settlements and the FTC

In this edition of Faegre Drinker’s State Attorneys General Update, we discuss: A joint FTC and Florida AG action against a chargeback servicing company for allegedly submitting false information to banks...more

Troutman Pepper

Arizona AG Settles With Restaurants Over Undisclosed Add-on Fees

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On April 28, Arizona Attorney General Kris Mayes announced a settlement with two Phoenix-area restaurants — Etta Scottsdale LLC and Maple & Ash Scottsdale LLC — over undisclosed add-on charges. AG Mayes claimed that the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit: Service Charges Are Wages, Not Tips, Under FLSA

On March 18, 2022, the Eleventh Circuit Court of Appeals ruled in Compere v. Nusret Miami, LLC, a collective action under the Fair Labor Standards Act (FLSA), that Nusr-et Steakhouse properly used automatically charged fees...more

Clark Hill PLC

San Francisco at Odds With Food Delivery Services

Clark Hill PLC on

A legal battle has arisen between the leading third-party food delivery firms and the City of San Francisco relating to a Covid-era ordinance capping the commissions these firms may charge restaurants to 15% — a cap made...more

Littler

St. Paul, Minnesota Limits the Amounts Food Delivery Platforms Can Charge During the Pandemic

Littler on

St. Paul has joined the growing list of cities limiting fees food delivery platforms can earn during the COVID-19 pandemic.  In enacting its ordinance, St. Paul follows fellow Minnesota cities Minneapolis and Edina, as well...more

Ervin Cohen & Jessup LLP

LA County Considers COVID-19 Recovery Charge

On October 27, 2020, the Los Angeles County Board of Supervisors approved a recommendation to consider allowing restaurants, breweries, and wineries to temporarily charge a “COVID-19 Recovery Charge” for on-site dining. The...more

Ervin Cohen & Jessup LLP

LA City Council Extends Delivery Fee Cap

On August 26, 2020, the Los Angeles City Council unanimously voted to extend the 15% cap on delivery fees charged to restaurants. The fee cap was originally adopted on June 10, 2020, and was set to expire on August 31, 2020....more

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