The bill prohibits restaurants from imposing mandatory gratuity service charges on parties of fewer than ten customers. This limitation is set to protect smaller groups from unexpected charges and potential service practices that could exploit their size. Additionally, should such a charge be applied, it must not exceed eighteen percent of the total bill, and customers must be notified verbally prior to payment. This provision is designed to ensure customers are fully aware of and consent to additional charges, fostering better customer relations.
Summary
House Bill 852, introduced in the Thirty-Third Legislature of Hawaii, addresses the issue of service charges imposed by hotels and restaurants, particularly concerning the mandatory gratuity service charge for food and beverage services. The bill specifies that any service charge applied must either be distributed directly to employees as tip income or clearly disclosed to the purchaser that it covers other costs unrelated to employee wages. This aims to enhance transparency for customers and ensure fair treatment of service industry workers.
Contention
There is likely to be some debate surrounding this bill. Supporters may argue that it enhances consumer protection and promotes transparency within the service industry. Conversely, opponents could contend that it restricts restaurant operations and employee earnings, especially in larger venues where tipping practices vary significantly. The requirement for clear notification could also cause tension, particularly in busy restaurant environments where quick service is essential.
Prohibiting postsecondary educational institutions from taking certain actions regarding admission applicants, applicants for employment and faculty concerning diversity, equity or inclusion, exceptions, providing for civil remedies and penalties, submitting a report to the legislature and posting information on the board of regents website.