Tired of hidden service fees and automatic tips while dining out? A new bill being introduced aims to remove those options.
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A bill moving through the Florida Legislature would give customers the ability to opt out of those charges, but the proposal has the state’s hospitality industry concerned servers will be the ones who would pay the price.
When a large party goes to a restaurant, an automatic tip is sometimes added.
Meehan’s Irish Pub owner Reggie Maggs explained the goal is to ensure employees are compensated for the extra work.
“The bar back has to help out, the food runner has to help out. A lot of people take care of that one party and then they’re not able to do any other tables,” said Maggs.
But a bill filed in the Florida House would prohibit service fees like automatic gratuity from being tagged onto parties of less than six people.
Additionally, customers in larger parties could opt out of paying them for any reason.
State Representative Demi Busatta (R-Coral Gables) proposed the change, which would also create new transparency requirements around service fees.
“You know what? The unfortunate reality is sometimes you have to increase the prices on your menu is you need to accommodate all these costs instead of sticking to the consumer after the fact,” said Busatta during the bill’s first committee stop.
But Samantha Padgett with the Florida Restaurant and Lodging Association argued limiting restaurants’ ability to charge fees would have a devastating impact on an industry still struggling after the pandemic.
“You’re not gonna pay $30 for a hamburger. It’s just not gonna happen, and so our restaurateurs are using the service charges in different ways that work for their service model,” said Padgett.
And Maggs noted when it comes to automatic tips it would be the employees, not the businesses, who bare the cost.
“Servers would be like, well I just don’t want to do it. Like it’s not worth it to me,” said Maggs. ”We’d have to try to pay them more. We’d have to increase costs more. We’d just have to change the game.”
Padgett told Action News Jax the hospitality industry is supportive of the overall effort to make fees more transparent.
She said she’s optimistic the opt-out language will be removed before the bill crosses the finish line.
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