Bill > HB385

This bill requires businesses using digital point-of-sale systems that automatically prompt customers for tips to make two key changes starting July 1, 2026: first, they must clearly disclose on the payment screen or a preceding screen that tips are intended for employees, and second, they must set the default tip amount to zero or provide a "no-tip" option. The bill defines a point-of-sale system as a digital device used to process electronic transactions and a tip as a voluntary additional payment recognizing service. The legislation does not apply to transactions at tables or bars, or payments made through mobile devices or online. Violations of these requirements will be considered an unfair, abusive, or deceptive trade practice, subject to enforcement by consumer protection agencies. The Maryland Department of Labor and the Division of Consumer Protection are required to publish information about these new requirements on their websites. The bill aims to increase transparency in tipping practices and give customers more control over optional gratuities.

Budget and Finance, Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0385?ys=2025RS