No more hidden 'junk' restaurant surcharges in California

SACRAMENTO, Calif. - A new state law bans hidden restaurant charges, including service fees, starting in July.

A growing number of restaurants have been implementing surcharges to help pay their workers, while also moving away from the traditional tipping structure.

Some restaurant and bar owners now say they're concerned about how the impending change will have on their bottom line.

"It's gonna be a little bit of a hit I think, because there's less money in the pockets of the server's and staff in general," said bar manager Chad Brown. "Inflation is a thing right now, so we are charging the bare minimum that we can charge as long as we make a profit."

The California Attorney General's Office says this new law helps ensure customers know what they're in for because a posted price will have to include the full amount that must be paid for any goods or services.

More guidelines will be released on Wednesday on  SB478 to help provide clarity on things like gratuities for large parties, private dining charges, and other fees that have been common practice for decades. 

The law was co-authored by the attorney general's office and two Bay Area senators, Sen. Nancy Skinner, (D-Berkeley) and Sen. Bill Dodd, (D-Napa).