Bill > SB1256

This bill amends Hawaii's existing law regarding service charges in restaurants by establishing specific restrictions on mandatory gratuity charges. The bill requires that mandatory service charges can only be applied to parties of ten or more customers, must not exceed 18% of the total bill, and are subject to two key disclosure requirements: the server must verbally notify customers about the charge before payment, and the menu must clearly display the mandatory service charge percentage in large font. Additionally, the bill maintains existing provisions that require restaurants to either distribute service charges directly to employees as tip income or clearly disclose to customers that the charge is being used for costs other than employee wages and tips. The legislation aims to provide transparency for customers by ensuring they are fully informed about automatic gratuity charges and limiting the circumstances under which such charges can be imposed, ultimately protecting consumers from unexpected or excessive service fees.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1256&year=2026