Bill > A05431

This bill establishes new regulations regarding automatic gratuities in New York, defining them as charges added to a consumer's bill without their ability to reduce or increase the amount. The legislation aims to prevent deceptive practices by requiring establishments to clearly inform consumers about automatic gratuities before they order, prohibiting gratuities based on taxes or fees unrelated to services rendered, and mandating that any additional tipping option includes a conspicuous statement that a tip has already been added. The bill places responsibilities on both manufacturers of point-of-sale terminals and establishments to ensure compliance, including updating software to prevent prohibited gratuity practices and providing clear notifications to consumers. Manufacturers must develop terminals that cannot implement deceptive gratuity functions, and establishments must not add automatic gratuities that violate the law's provisions. The bill allows for the Attorney General to create additional rules and regulations regarding automatic gratuities, and gives businesses time to update their systems and practices. The law will take effect one year after it becomes law, giving businesses time to adapt to the new requirements.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A5431