A recently introduced bill in the Florida House of Representatives seeks to impose limits on automatic gratuities and service charges at restaurants. The goal is to enhance transparency for patrons, granting them greater control over these fees or the option to decline them altogether if desired.
House Bill 535 introduces new rules that could significantly alter how dining establishments implement these often-surprising charges, particularly for international tourists. Spearheaded by Representative Demi Busatta from Coral Gables, the bill specifies that restaurants, cafes, and similar venues may only apply automatic gratuities or service fees to groups of six or more people.
Nevertheless, the amendment also indicates that large parties are not obligated to pay these gratuities if a member of the group files a complaint about service quality. Additionally, the proposal mandates that menus and receipts must clearly display any service charges or automatic gratuities, alongside details on how these funds are distributed among staff.
The amendment emerged after Busatta received a bill at a Miami restaurant that featured both a service charge and a predetermined tip, a practice becoming increasingly common in the dining industry. "In Miami, we've noticed more and more establishments automatically adding a 20% gratuity, whether labeled as a tip, service charge, or service fee," noted the Republican representative.
Many Florida restaurants impose automatic charges ranging from 18% to 25%, particularly for large groups or during peak hours. The prohibition on automatic tips is just one aspect of the HB 535 bill, which primarily aims to enable restaurants and hotels to remove patrons who fail to pay their bills.
The Florida Restaurant and Lodging Association (FRLA) initially supported the bill but now warns that the gratuity amendment might adversely affect businesses. "Many restaurants rely on these charges to ensure service quality and business success," stated Samantha Padgett, FRLA's Vice President of Government Relations. She suggested that instead of banning automatic charges, notification requirements should be strengthened to fully inform patrons before placing an order.
A study referenced by Local 10 in November indicated that tips account for 21% of the average income for restaurant employees in Florida.
The bill also sets penalties for establishments that fail to comply with the new rules, with fines reaching up to $5,000. If enacted, venues must clearly indicate any additional charges on the menu or verbally before the customer orders, providing the option to reject or adjust the tip percentage.
Meanwhile, the Senate is considering a similar measure, SB 606, which also allows business owners to expel non-paying customers without involving law enforcement. However, SB 606 lacks the gratuity amendment, potentially delaying its passage until both state legislative chambers reach a consensus.
Currently, Florida laws regulate automatic gratuities. Statute 509.214 allows dining establishments to include them only if clearly indicated on the bill and menu. The debate highlights an ongoing issue within the restaurant industry, where the rising inclusion of these fees has elicited mixed reactions.
As HB 535 makes its way through the legislative process, Florida restaurants remain vigilant about potential changes that could impact their operations and customer relationships.
Florida Restaurant Gratuity Regulations Explained
What is House Bill 535 in Florida?
House Bill 535 is a proposed legislation in the Florida House of Representatives aiming to restrict automatic gratuities and service charges in restaurants, enhancing consumer transparency and control over these fees.
How might the bill impact restaurant operations?
The bill could alter how restaurants apply automatic gratuities, potentially requiring clearer notification on menus and receipts, and allowing customers to refuse or adjust such charges.
Why are automatic gratuities a concern for some patrons?
Automatic gratuities can surprise customers, especially tourists unfamiliar with local practices, and lead to dissatisfaction if not clearly communicated or if service quality is poor.