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Restaurant service charge disclosure rules in four states

None of these four states bans a mandatory service charge, kitchen fee or automatic gratuity outright. What they regulate is where and how a restaurant has to tell the guest about it. This page covers only states whose rule we read in the statute itself or in the state attorney general's published guidance: California, Colorado, Florida and Minnesota. It is a summary of what those texts say, not legal advice.

By Restaurateur News staff · Published September 17, 2026

At a glance

Florida

Florida's rule is the most specific of the four about format. Section 509.214 defines an "operations charge" as "an automatic fee or charge, other than a government-imposed tax, that a customer is required to pay in addition to the cost of the food and beverage purchased," and says the term includes "service charges, automatic gratuities, credit card surcharges, and delivery fees." (509.214(1)(b))

What the statute requires of an establishment that charges one:

• Menu, contract, website and app. A notice "that includes the amount or percentage of the operations charge and the purpose of the operations charge," in a font "equal to or greater than the font used for menu item descriptions" or the contract's general provisions. Without menus, table service or written contracts, the notice goes on the menu board or on a sign by the register. (509.214(2))
• The bill. A notice on the face of the bill that an operations charge is included, clearly stating its percentage or amount. (509.214(3))
• The receipt. "Separate lines for gratuity, an operations charge, and sales tax," with any automatic gratuity inside the operations charge separately stated. (509.214(4))

The section does not create a private cause of action, and it does not apply to a dining plan, package or fixed-price meal whose price is disclosed before purchase. (509.214(5) and (6))

California

California's "Honest Pricing Law" (SB 478), in effect since July 1, 2024, makes it illegal for most businesses to advertise a price that leaves out mandatory fees other than certain government taxes and shipping. SB 1524 carved out restaurants: according to the Attorney General, "Mandatory fees charged by restaurants, bars, and other select food vendors are exempted from SB 478's requirements so long as the fee is clearly and conspicuously displayed wherever prices are shown." The law is at Section 1770(a)(29) of the Civil Code. (CA Attorney General)

The same guidance notes that the law "does not affect tips or gratuities left by customers, since they are not mandatory." (CA Attorney General)

Colorado

HB25-1090, approved April 21, 2025, added section 6-1-737 to the Colorado Revised Statutes. The general rule requires the total price to be disclosed as a single number, more prominently than other pricing information. A food and beverage service establishment is treated as compliant if it does not use deceptive, unfair or unconscionable pricing practices and, "in every offer, display, or advertisement for the purchase of a good or service," includes with the price "a clear and conspicuous disclosure of the percentage or amount of any mandatory service charge and an accurate description of how the mandatory service charge is distributed." (Session Laws 2025, ch. 94)

The act defines a mandatory service charge as a mandatory fee, charge or amount that a food and beverage service establishment adds to a customer's bill, and it defines those establishments to include retail food establishments, drinking places, brew pubs, distillery pubs, vintner's restaurants, and the on-premises retail portion of breweries, distilleries and wineries. It takes effect January 1, 2026. Under the enacted bill summary, a violation is a deceptive, unfair and unconscionable act or practice subject to penalties under the Colorado Consumer Protection Act. (session law, bill summary)

Colorado is the only state of the four whose text asks the restaurant to say how the charge is distributed, not just how much it is.

Minnesota

Minnesota amended its Deceptive Trade Practices Act (Minn. Stat. 325D.44) with price transparency rules effective January 1, 2025. The Attorney General's FAQ answers the restaurant question directly: "If a restaurant charges a mandatory fee, other than an automatic and mandatory gratuity as gratuity is defined elsewhere in Minnesota law, it must be included in the total price advertised, displayed, or offered to consumers by the restaurant." (MN AG FAQ)

Automatic gratuities, such as a percentage added for large parties, can continue and do not need to be in the advertised price, but the law requires that they "be disclosed clearly and conspicuously." A "health and wellness" fee that is mandatory would have to be in the total price. (MN AG FAQ)

That makes Minnesota the strictest of the four for non-gratuity fees: a kitchen or wellness fee cannot simply be disclosed, it has to be built into the price shown.

What this page does not cover

Other states and many cities have their own junk-fee, surcharge or tip rules, and several states also treat mandatory service charges differently for sales tax and wage purposes. We add a state here only after reading its statute or its agency's guidance, so if your state is missing it means we have not verified it yet, not that no rule exists. For the older money side of running a restaurant, see the 2017 Restaurateur News pieces on menu pricing and restaurant payroll.

Sources

• Florida Statutes 509.214 (2026), The Florida Senate
• California Attorney General: SB 478, Hidden Fees
• Colorado Session Laws 2025, Chapter 94 (HB25-1090), PDF
• Colorado General Assembly: HB25-1090
• Minnesota Attorney General: Price Transparency Law FAQ (PDF)