Late Saturday night, California Gov. Gavin Newsom signed emergency legislation that exempts restaurants from a new law set to take effect on July 1.
The legislation, passed in 2023, was aimed at eliminating so-called "junk fees. And the latest legislation signed by Newsom means restaurants are able to keep surcharges in place, just as long as they clearly disclose additional charges.
“We made it clear they can’t just change it without putting it in clear and concise type on the menu on every single page of the menu to make sure that when you get the bill there are no surprises,” said Senator Bill Dodd of Napa.
The California Restaurant Association (CRA) tried to fight this law when it was first signed. The association argued it should not apply to restaurants because menu items are not "goods" or "services" as defined in California's civil code.
Although establishments can keep the surcharge, some consumers said they are fine with it.
“I don't think it's a bad thing it’s still there because it's going to workers or at least it should be going toward workers and I don't mind it,” said Jarrett Powers of San Jose.
Some consumers even said they appreciate transparency.
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Restaurants will have one year to ensure the notification of the service fee is on menus and meet legal definitions.
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