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Florida HB 535 Defines Food Service Automatic Gratuity Charges
Palm Coast Local Government
House Bill 535 introduces updates to regulations governing public food service establishments in Florida. The bill revises key definitions, updates the rules public food industry automatic gratuity and service charges. Part 1 of HB 535.
A significant change under proposed HB 535 allows public food service establishments to include an automatic gratuity or service charge in certain situations. However, it requires clear notification to guests about these charges, specifying the recipient and percentage received. The bill also ensures that guests have the option to decline the automatic gratuity and prohibits its application in some cases. Additionally, it clarifies how gratuities or service charges should be calculated, ensuring transparency for both businesses and customers.
These changes aim to enhance consumer protection, improve business practices, and create clearer guidelines for the hospitality industry.
For Service and Food Service Industries the amendment and changes are as follows.
Section 3. Section 509.214, Florida Statutes, is amended to read:
509.214 Notification of Automatic Gratuity or Service Charge
(a) A public food service establishment may include an automatic gratuity or service charge in the price of food or beverages for parties of six or more guests.
(b) The establishment must include a notice on the food menu, on every bill provided to a guest, and on any item or receipt requiring the guest’s signature. This notice must state that an automatic gratuity or service charge is included, specify the recipient, and indicate the percentage received by the person or business entity.
(c) A guest may request not to pay an automatic gratuity or service charge, and the establishment must comply with this request.
A public food service establishment may not include an automatic gratuity or service charge for parties of fewer than six guests.
If an automatic or suggested gratuity or service charge is applied, it must be based on the pre-tax price of the food or beverages.
For this section, "gratuity" and "service charge" refer to any charge or required payment other than the price of food or beverages.]
The bill was passed 13-3 and will now go to the House Criminal Justice Subcommittee.
If passed into law, Effective Date: 7/1/2025
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