Surcharges on your check? A ban is coming and one Fresno restaurateur is all for it

A California law taking effect July 1 bans businesses from charging hidden fees and surcharges.

Last week, Attorney General Rob Bonta confirmed the ban also applies to restaurants, which sent a ripple through the industry.

At least one local restaurateur agrees with the move.

Senate Bill 478, signed by Gov. Gavin Newsom in October, would make it illegal to add surcharges — or “junk fees” — to customers’ bills. SB 478 also applies to concert tickets and hotel fees.

“Californians are sick and tired of dishonest fees being tacked on to seemingly everything,” said state Senator Bill Dodd in a news release . “It’s an underhanded trick to boost corporate profits at the expense of those who can least afford it.”

Despite these fees being seen for years in the travel and lodging industry, the practice of adding junk fees to customers’ bills has spread as inflation continues to depress the economy.

The California Restaurant Association disagrees with Bonta’s interpretation of the law, reported KTLA.

Dave Fansler, owner of Pismo’s Coastal Grill and several other local restaurants, said that despite recent legislation that seems to unfairly target the restaurant industry, this bill is a positive for customers.

“We don’t do any surcharges,” he said. “I don’t believe in surcharges and I’m not surprised that this law has come into existence because there are so many people stealing money from employees. So many employers are stealing money from their staff by putting these surcharges on the ticket.”

Fansler said the ambiguity of the service charges don’t hold restaurant owners accountable for what they do with the additional revenue.

“The only legitimate surcharge I think you can put on a ticket is the cost of the credit card,” Fansler added. “We don’t even do that, but that’s at least something that is black and white and understandable — the difference between cash and credit.”

Despite supporting this law, Fansler said that the legislation coming from Sacramento regarding wages and other factors still threaten to harm the restaurant industry.

The new California fast-food minimum wage of $20, which went into effect last month , will continue to threaten not only restaurants, but potential young employees seeking to break into the workforce, he said.

The SB 478 junk fee law will still allow restaurants to charge gratuity for large parties.