New CA bill could allow restaurants to keep service fees if they are disclosed

>> A NEW LAW BANNING SO-CALLED JUNK FEES ACROSS THE STATE JULY 1ST COULD SOON BE GETTING MODIFIED. ON THURSDAY, TWO BAY AREA STATE SENATORS INTRODUCED A NEW BILL THAT CLARIFIES HOW RESTAURANTS WOULD BE REQUIRED TO DEAL WITH THE JUNK FEE BAN IN THE NEW BILL, RESTAURANTS WILL STILL BE ABLE TO CHARGE THINGS LIKE SERVICE FEES TO CUSTOMERS, AS LONG AS THEY'RE CLEARLY EXPLAINED TO DINERS AHEAD OF THEIR MEAL. >> THAT SB 478 WAS NOT INTENDED TO AFFECT THE RESTAURANTS, BARS AND FOOD SERVICE PROVIDERS THAT HAD A CLEARLY LISTED, TRANSPARENT SERVICE CHARGE OR SURCHARGE OR ADDITIONAL FEE. >> THE ORIGINAL BILL WAS PASSED LAST YEAR, BUT CONCERN OVER RESTAURANT FEES STARTED JUST A FEW WEEKS AGO. I'M HERE AT THE PALETTE TEA HOUSE AT SAN FRANCISCO'S GHIRARDELLI SQUARE, WHERE THEY ALREADY INCLUDE VERBIAGE ABOUT SERVICE CHARGES ON THEIR MENUS. HOWEVER, THEY DO TELL ME THAT THE NEW LAW HAS STILL CAUSED CONFUSION AMONG THEM AND THEIR STAFF. >> WE KNOW ABOUT IT FOR A WHILE, BUT EXACTLY WHERE DO THEY APPLY TO A RESTAURANT OR NOT? IT'S YOU KNOW, NOBODY REALLY KNOWS FOR CERTAIN. >> DENNIS LOOOOOONG IS THE PALETTES GENERAL MANAGER. HE BELIEVES THE NEW LEGISLATION IS NEEDED. DENNIS SAYS RESTAURANTS LIKE HIS RELY ON SERVICE FEES TO MAKE ENDS MEET, AND THE POSSIBILITY OF GETTING RID OF THEM WOULD HAVE BEEN DETRIMENTAL. HE ALSO TELLS ME THE MONEY COLLECTED DIRECTLY BENEFITS HIS STAFF IN A MORE EQUAL WAY. >> SO IF A CHARGE IS CONSIDERED A RESTAURANT INCOME AND WE CAN DISTRIBUTE THAT AT OUR DISCRETION, SO WE WERE ABLE TO TIP OUR DISHWASHER, OUR LINE COOKS, AND EVERYBODY IN THE RESTAURANT WILL GET BENEFIT FROM IT. >> AND GIVEN THE DIFFICULT TIME MANY RESTAURANTS HAVE HAD RECOVERING SINCE THE PANDEMIC, THOMAS SAYS SHE TOO, IS THANKFUL LAWMAKERS ARE STEPPING IN TO MAKE THINGS CLEAR ONCE AND FOR ALL. >> WE JUST DON'T WANT TO LEAVE A LAW UP TO HAVING IT TO BE LITIGATED TO FIGURE IT OUT, LAWMAKERS SAY THEY HOPE TO PASS A NEW

Channel: ABC7 News Bay Area

Views: 1,025

Keywords: news, abc, abcnews, newsstory, restaurants, consumer, business, california, fees, surcharge, tips

Id: mBP9pvPJETY

Length: 2min 0sec (120 seconds)

Published: Sat Jun 08 2024