Florida Law Requires Restaurants to Disclose Mandatory Fees

Diners in Florida will experience greater transparency when dining out starting July 1, thanks to a new state law. This legislation mandates that restaurants must clearly disclose mandatory fees and service charges before customers place orders. The update extends past automatic tips to encompass ‘operations charges,’ including service fees, credit card surcharges, and delivery fees, excluding taxes.

Restaurants implementing these charges must clearly state the amount or percentage and the rationale behind them on menus, websites, mobile platforms, and applicable written contracts. This information must also be present on customer bills.

Customers might encounter automatic gratuities as high as 20%, as establishments try to avoid tipping confusion.

This legislative change aims to provide diners with clarity about their expenses ahead of time. Ashley Chambers from the Florida Restaurant & Lodging Association emphasized the importance of transparency, citing the shifting landscape of rising costs and customer expectations regarding tipping and service charges.

The law takes effect on July 1, 2026, and necessitates pre-order notification of service charges or automatic gratuities. Eric Douglas, with BOL Hospitality Group, supports the law, noting transparency benefits both parties. His group plans to apply an 18% service charge at one of their restaurants, directing proceeds to employees.

Douglas believes in the openness of charge distribution, asserting the right of diners to understand whether fees support staffing or operational costs. Automatic gratuities can ensure fair compensation for serving large groups.

Vicki Parmelee, owner of Jumby Bay Island Grill, opts for upfront menu pricing rather than post-meal fees. Her philosophy underscores transparency in guest billing, avoiding surprise charges.

Some diners might misconstrue the law as an indication of past restaurant misleadings, potentially viewing themselves as deceived in past dining experiences. Parmelee advocates for adjusting menu prices to reflect current costs instead of resorting to additional service charges.

She expresses concerns about mandatory fees replacing traditional tipping, emphasizing that tips should be voluntary rewards earned by staff performance.

The Florida legislation doesn’t prohibit mandatory charges but insists on clear pre-order disclosure by participating restaurants.

Peter Burke, a lifestyle editor at Fox News Digital, covers various areas, particularly food and drink.