New Jersey bill would require restaurants to disclose mandatory gratuities
TRENTON, N.J. — New legislation introduced in the New Jersey Legislature would require restaurants to clearly disclose any mandatory gratuity charges to customers or face penalties under the state’s Consumer Fraud Act.
Under the bill, restaurants would be obligated to display information about mandatory gratuities prominently on the menu, at the restaurant entrance, on the patron’s bill, and on the restaurant’s website if one exists. Failure to do so would be considered an unlawful practice subject to fines and legal action.
The bill states, “It shall be an unlawful practice for any person to charge a mandatory gratuity in a restaurant without disclosing, in a prominent manner, the gratuity on the menu, at the entrance of the restaurant, on a patron’s bill, and if applicable, on the restaurant’s website.”
Violations of the proposed law could lead to monetary penalties of up to $10,000 for a first offense and up to $20,000 for subsequent offenses. Additional penalties may include cease and desist orders from the Attorney General, punitive damages, treble damages, and the reimbursement of legal costs to the injured party.
Consumer protections strengthened
Supporters of the bill say the measure aims to increase transparency for restaurant patrons and prevent unexpected charges. Mandatory gratuities, often automatically added for large parties or special services, would now be subject to stricter disclosure requirements to avoid confusion or disputes over billing.
The bill is scheduled to take effect on the first day of the third month following its enactment.
If approved, the measure would add new consumer protections in New Jersey’s dining industry, reinforcing existing laws that regulate pricing disclosures.
