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Bill > S2153
NJ S2153
NJ S2153Requires restaurant to disclose mandatory gratuity to patron and makes failure to disclose unlawful practice under consumer fraud act.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 clearly inform patrons about any mandatory gratuity, also known as a service charge, by prominently displaying this information on their menus, at the restaurant's entrance, on the customer's bill, and on their website if they have one. Failure to provide this disclosure is considered an unlawful practice under the consumer fraud act, meaning it's a deceptive or unfair business practice. Violators could face significant penalties, including fines of up to $10,000 for a first offense and up to $20,000 for repeat offenses, along with potential orders to stop the practice, punitive damages, and the recovery of triple the amount of damages and legal costs for those harmed.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
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/2026/S2153 |
| BillText | https://pub.njleg.gov/Bills/2026/S2500/2153_I1.HTM |
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