FOR IMMEDIATE RELEASE
June 30, 2024
Contact: Megan Gamble ▪ 916.832.1884 ▪ mgamble@calrest.org

SACRAMENTO, CA – 

Yesterday, Governor Newsom signed CRA-cosponsored bill, SB 1524 (Dodd + Wiener), into law, which clarifies language for restaurant pricing and transparency and builds on SB 478 set to go into effect Monday. 

“The California Restaurant Association thanks the Legislature and Governor for passing and signing SB 1524 into law, recognizing the needs of restaurants and catering businesses to have flexible pricing models,” said Matthew Sutton, Senior Vice President Government Affairs + Public Policy.

Sutton added, “The bill ensures transparency in pricing for the customer before they make their decision to order and supports the workers because many restaurants have switched to service charge models that enable more equitable pay for staff and help finance more benefits.”

It’s effective in time for the July 1 implementation of SB 478.

SB 1524 requires mandatory fees and charges to be clearly and conspicuously displayed, with an explanation of their purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.

SB 1524 builds upon SB 478 from 2023 which was aimed at preventing “drip pricing”, where consumers see an advertised price, but are subject to additional, undisclosed charges at purchase.

SB 1524 provides transparency in pricing and allows guests to be presented with the price of various menu items and the amount of surcharge at the same point in time, when they are deciding what to order, and before they are charged for the meal.

Finally, SB 1524 acknowledges the increasing trend among restaurants to establish and disclose “service charge” models to help finance non-mandatory benefits to team members and staff.

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