Bill
Bill > S4459
NJ S4459
Requires restaurant to disclose mandatory gratuity to patron and makes failure to disclose unlawful practice under consumer fraud act.
summary
Introduced
05/19/2025
05/19/2025
In Committee
05/19/2025
05/19/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill requires a restaurant to disclose a mandatory gratuity charge to a patron on the menu, at the entrance of the restaurant, on the patron's bill, and if the restaurant operates a website, on the restaurant's website. Each point of disclosure is required to be in a prominent manner. A violation of the bill is an unlawful practice under the consumer fraud act. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
AI Summary
This bill requires restaurants to prominently disclose any mandatory gratuity (an automatic service charge added to a bill) at multiple locations, including the menu, restaurant entrance, customer bill, and website (if the restaurant has one). By mandating clear disclosure, the bill aims to prevent hidden or unexpected charges that could surprise patrons. Failure to properly disclose the mandatory gratuity is considered an unlawful practice under the consumer fraud act, which means restaurants can face significant penalties for non-compliance. Specifically, restaurants could be fined up to $10,000 for a first offense and $20,000 for subsequent offenses. Additionally, the Attorney General can issue cease and desist orders, and injured parties may be awarded punitive damages, treble damages (three times the actual damages), and legal costs. The bill will take effect on the first day of the third month following its enactment, giving restaurants time to adjust their practices and implement the required disclosures.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 05/19/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4459 |
| BillText | https://pub.njleg.gov/Bills/2024/S4500/4459_I1.HTM |
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