Hospitality employers in California beware.  Efficient July 1, 2024, California’s Junk Charge Ban (SB 478) will go into impact, making it illegal to promote, show or supply a value for a great or service that doesn’t embrace all necessary charges or fees.  

This invoice is meant to deal with the customarily perceived as bait-and-switch observe of utilizing junk charges (aka hidden charges, shock charges, or drip charges) to maintain costs low on a web site or menu, after which add a “Resort Charge” or “Service Cost” or “Surcharge” on the finish of the acquisition.  This observe results in a bigger price for the lodge keep, occasion ticket, or meal than many shoppers meant. The invoice’s sponsors wished to deal with this observe of hiding the true prices of a transaction till it’s too late, or too irritating, for a buyer to again out. 

This new legislation gained’t essentially make issues cheaper, as a enterprise can set costs as they need, so long as the ultimate complete is disclosed upfront. So anticipate your $25 burger to go up a couple of bucks. The invoice was additionally sponsored by Legal professional Common Rob Bonta, whose workplace is meant to difficulty tips for companies in some unspecified time in the future earlier than the legislation goes into impact. 

The impression on eating places is predicted to be important as this latest Los Angeles Occasions article explains.  Many eating places that use a  “surcharge” to offset prices of elevated minimal wages all through the state must change their practices.   

We will anticipate class and PAGA actions alleging unfair enterprise observe and false promoting claims to abound for hospitality employers that shouldn’t have their web sites, menus, and different pricing publications up to date by July 1^st.