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FLORIDA - A new bill moving through the Florida Legislature could ban automatic gratuity and service charges for smaller parties at restaurants.
House Bill 535 (HB 535), originally intended to help businesses remove non-paying guests, now includes an amendment from State Rep. Demi Busatta, R-Coral Gables, prohibiting automatic gratuities for parties under six.
For larger groups, customers could refuse the charge if they complain about service.
The bill also mandates clear disclosure of service fees on menus and receipts.
Busatta proposed the amendment after noticing both a service fee and automatic gratuity on a Miami restaurant bill.
She cited a growing trend of restaurants automatically adding a 20% gratuity, sometimes on takeout orders.
A 2024 Square report found service fees in restaurant transactions rose from 1.27% in 2022 to 3.7%, with tips comprising 21% of a Florida restaurant worker’s income.
The Florida Restaurant and Lodging Association (FRLA), which originally supported HB 535, now opposes the amendment, arguing it could hurt workers reliant on tips.
While some business owners back the change, others fear it will lead to lower wages for servers.
A similar Senate bill, SB 606, does not include the amendment, meaning lawmakers must align both bills for the proposal to move forward.
HB 535, now heading to the Criminal Justice Subcommittee, also aims to clarify how businesses handle non-paying guests, allowing police to remove them without making an arrest.