Bill > HB852

This bill amends Hawaii's existing law regarding service charges in restaurants by establishing new restrictions on mandatory gratuity fees. Specifically, restaurants can only impose a mandatory service charge on large groups of ten or more customers, and such charges must not exceed 18% of the total bill. The bill requires restaurants to provide clear verbal notification to customers about the service charge before the bill is paid and to display the service charge percentage prominently on the menu. Additionally, the bill maintains existing requirements that service charges must either be distributed directly to employees as tip income or clearly disclosed as being used for other costs. The legislation aims to increase transparency around service charges and protect customers from unexpected or excessive mandatory fees, ensuring that diners are fully informed about additional charges before paying their bill.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=852&year=2026