South Florida lawmakers are in the spotlight on controversial topics of restaurant service charges, and the new House bill could change diner trends with meals.
In February, HB 535 was submitted entitled “Public Accommodation and Public Food Service Facilities,” aimed to help restaurants and hotels eliminate customers who don’t pay their bills. But earlier this month, state legislator Demi Busatta of R Coral Gables skated on an amendment to give more control over the extra charges.
Her amendments will prohibit service charges and automatic suffrage for parties with fewer than six guests, making it an option for large parties of seven or more.
Restaurants also force the restaurant to clearly spell out automatic filling and service charging policies on menus and receipts that diners must sign.
“Most customers may assume that service fees will be donated to the servers, but what’s actually happening is that service fees go to restaurants to meet the overhead costs,” he told the South Florida Sun Sentinel. “This confusion can be frustrating for customers and frustrating from an employee’s perspective.”
Busatta says he suggested an amendment after hearing numerous complaints from diners and restaurant owners along with personal experience. In early March, Busatta dined at a restaurant in Miami, received a check that failed to mention the service fee and automated rewards, leading him to ask for an itemized fee.
“The restaurant used three different ways to explain this recharge beyond groceries and drinks,” Busatta says. “But who are these fees?”
Busatta says he is confident the bill will be passed.
The revision proved to be divisive this month, as Sun Sentinel’s 192,000 Facebook groups, “Eat, South Florida, South Florida” show.
“This is South Florida, so I don’t think we need to pay because everyone complains about the quality of the service. I guarantee that,” commenter Lisa Chao wrote.
“If people don’t like service charges and fees, don’t support the facilities that have them,” wrote member Eric Anderson.
A report from Payment System Company Square in August 2024 shows that since the pandemic, service charges at restaurants have skyrocketed in fee letters since the pandemic. In the second quarter of 2024, service charges were included in 3.7% of national restaurant transactions, up from 1.27% in early 2022.
The Florida Restaurant and Lodging Association, which promotes hospitality benefits through state lobbying, says service charges help restaurants create livable wages on workers, particularly advanced servers, which are less than the minimum wage in Florida.
Samantha Paget, vice president of the association’s government relations and general counsel, gives diners the ability to stop paying them is a “bad idea.” “This functionally removes tools that allow Florida restaurants to succeed at challenging times and continue to provide competitive wages to attract and retain talent and staff.”
Instead of allowing diners to choose whether to opt out of service charges, she argues that restaurants should do a “better job of notifying customers” of fees by providing more notifications, such as menu boards and signs on the register.
“That way customers can decide for themselves whether they want to pay before they eat,” says Paget. “I think it’s a very real risk that consumers can reduce service charges at any time for any reason.”
John Noble Mai, associate professor and chef of hospitality at Florida International University, says he wants to decide that customers will refuse service fees or benefits.
“I love opting out,” says Masi. “Forcing guests to pay for things is never the answer if they decide they don’t deserve a reward, regardless of the reason. It doesn’t send the right message.”
Masi acknowledges that service fees and bans on excellence can damage restaurant workers’ wallets, but adds that livable wages are the restaurant’s responsibility and not the diner’s responsibility.
“A (restaurants) who are flexible and try to improve and manage these costs are something that can survive and thrive,” says Masi.
The bill is currently moving to the Criminal Justice Subcommittee. This does not plan for the next meeting yet. If adopted, the bill will come into effect on July 1st.
