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A new bill proposed in the Florida House of Representatives aims to limit automatic tips and service charges in restaurants, with the goal of providing greater transparency to consumers and allowing them more control over these charges, or the option to decline them if they wish.
HB 535 introduces restrictions that could alter the way dining establishments implement these practices, which often catch customers off guard, especially foreign tourists.
The proposal, led by representative Demi Busatta from Coral Gables, stipulates that restaurants, cafés, and other food establishments can only apply automatic tips or service charges for groups of six people or more.
However, the amendment also states that clients from large groups will not be required to pay this tip if any of them files a complaint regarding the quality of service.
Additionally, it requires that menus and receipts in restaurants clearly indicate any service charges or automatic tips, and that businesses detail how these funds are distributed among their staff.
The amendment was proposed after Busatta received a bill at a restaurant in Miami that included both a service charge and a preset tip, a practice that has become increasingly common in the dining industry.
"In Miami, we have seen that an increasing number of restaurants automatically include a 20% tip, whether they call it a gratuity, service charge, or service fee," clarified the Republican policy.
Many restaurants in Florida impose automatic charges ranging from 18% to 25%, especially for large groups or during peak hours.
The prohibition of tips is just one part of the HB 535 bill introduced in the state House of Representatives, whose primary goal is to make it easier for restaurants and hotels to remove customers who do not pay their bill.
The Florida Restaurant and Lodging Association (FRLA) initially supported it, but now warns that the amendment regarding tips could harm businesses.
"Many restaurants rely on these charges to ensure service quality and business success," said Samantha Padgett, Vice President of Government Relations for the FRLA, who suggested that instead of banning automatic charges, notification requirements should be strengthened so that the user is fully informed before placing an order.
A study from November cited by Local 10 revealed that tips account for 21% of the average income of a restaurant employee in Florida.
The bill also establishes penalties for establishments that do not comply with the new regulation, with fines of up to $5,000.
If approved, establishments must ensure that any additional charges are clearly indicated on the menu or communicated verbally before the customer places their order, and that the option to decline or adjust the tip percentage is allowed.
On the other hand, the Senate also has a bill, SB 606, which, like the one from the House of Representatives, allows owners to eject customers who do not pay their bill without the need to call the police.
But the SB 606 does not include the amendment regarding tips, which could delay its approval until both chambers of the state Congress reach an agreement.
Currently, there are laws in Florida regulating automatic gratuities. Statute 509.214 states that dining establishments can add them under one condition: they must indicate this whenever such a practice is included on the bill and the menu.
The debate reflects an old dilemma in the restaurant industry, where the increasing inclusion of these charges has generated mixed reactions.
As the HB 535 bill moves through the legislative process, restaurants in Florida remain alert to potential changes that could impact their operations and their relationship with customers.
Frequently Asked Questions about the Limitation of Automatic Gratuities at Restaurants in Florida
What does the HB 535 bill propose in Florida regarding automatic tips?
The bill HB 535 seeks to limit automatic tips and service charges in Florida restaurants, allowing them to be applied only to groups of six people or more. Customers will be able to reject or adjust the tip percentage if they are not satisfied with the service.
How does the law impact restaurant employees who rely on tips?
The bill may impact restaurant employees, as a study shows that tips account for 21% of the average income for a worker in this sector in Florida. The regulation could result in a decrease in automatic tips and, consequently, a reduction in employee earnings.
What do the supporters and opponents of the amendment regarding automatic tips argue?
The proponents of the bill, such as representative Demi Busatta, argue that it aims to provide greater transparency and control for consumers over additional charges. However, opponents such as the Florida Restaurant and Lodging Association warn that it could harm businesses by reducing the quality of service guaranteed by automatic tips.
What differences does bill SB 606 present compared to HB 535?
The SB 606, unlike the HB 535, does not include restrictions on automatic tips, although it shares the provision that allows restaurant owners to expel customers who do not pay without the need to involve the police. This difference could delay its approval until an agreement is reached in both chambers of the state Congress.
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