New Restaurant Fee Rules: 6 Things That Changed on Your Bill in Some States
That extra restaurant charge might look familiar, but the rules behind it are changing. States including Minnesota, Massachusetts, California, and Colorado have introduced pricing transparency requirements, while New York City updated its restaurant surcharge rules in April 2026.
The changes come as diners pay closer attention to their spending. A 2026 report covering transactions at about 180,000 U.S. restaurant locations found that full-service restaurant tips have generally stayed between 19.1% and 19.9% in recent years, making added service charges another important part of the dining budget.
Here’s what six sets of restaurant fee rules mean for your next bill.
Minnesota Now Requires Mandatory Fees in Menu Prices
The price you see should include required surcharges. Since January 1, 2025, Minnesota restaurants have generally been required to include mandatory fees in advertised menu prices, rather than adding them after customers order. For example, a restaurant charging a 5% employee wellness fee must factor that charge into its displayed prices, though it can still explain the fee separately.
The law treats qualifying automatic gratuities differently, allowing restaurants to disclose the percentage instead of building it into individual menu prices. Minnesota also requires third-party food delivery platforms to disclose additional delivery charges when customers select restaurants or items and again before checkout, giving you two opportunities to examine the costs.
Related: 7 Restaurant Chains Americans Love the Most
Massachusetts Requires More Complete Restaurant Prices
Hidden mandatory fees can no longer wait until checkout. Massachusetts began enforcing its new junk-fee regulations on September 2, 2025, requiring restaurants to incorporate mandatory charges into displayed menu prices and bills, making it easier to compare the actual cost of different dining options.
Restaurants can still add properly disclosed automatic gratuities for larger parties, and government sales taxes can remain separate from menu prices. Massachusetts Attorney General Andrea Joy Campbell emphasized that “junk fees and deceptive pricing are not lawful,” reflecting the state’s stronger approach to upfront pricing.
The practical takeaway is to check whether a service charge is already included in the listed price before comparing restaurants.
California Restaurants Can Still Charge Separate Service Fees
California has an important restaurant exception. The state’s Honest Pricing Law took effect on July 1, 2024, requiring most businesses to advertise prices that include mandatory charges, but an amendment known as SB 1524 created a special exception for restaurants and certain other food businesses.
Restaurants can continue listing mandatory service fees separately, as long as they clearly and conspicuously disclose those charges wherever prices appear. The California Attorney General’s Office explains that the general law aims to ensure customers see the price they will pay, although this specific exception applies to restaurant pricing.
That means you may still see a percentage-based service fee on a California restaurant bill, even when the advertised menu price doesn’t include it. Check the menu disclosures before ordering, since the rule focuses on transparency rather than eliminating restaurant surcharges.
Colorado Requires Restaurants to Explain Where Service Fees Go
A service charge now comes with more information about its purpose. Colorado’s HB 25-1090 became effective January 1, 2026, establishing broader protections against deceptive pricing and requiring businesses to be more transparent about mandatory charges.
The law allows food and beverage establishments to meet its disclosure requirements by identifying mandatory service charges within the total price and explaining how those charges are distributed. This matters because a fee added to your restaurant bill doesn’t necessarily go entirely to your server, and Colorado law provides a clearer way to understand how it’s intended to be distributed.
Before paying, look for information explaining what the charge covers and how the restaurant distributes it. That distinction can help you decide whether to add an additional voluntary tip.
New York City Updated Its Rules for Automatic Gratuities
Some employee-related fees are permitted, but ordinary menu surcharges remain restricted. On April 19, 2026, New York City updated its restaurant surcharge rules, allowing certain mandatory employee gratuity charges required by written agreements, including collective bargaining agreements.
The city still generally prohibits restaurants from adding blanket surcharges to listed food and beverage prices, but permits legitimate, clearly disclosed service charges for specific situations. Examples include splitting one meal between multiple plates, minimum per-person charges, and automatic gratuities for parties of eight or more.
For charges required by an employee agreement under the updated rule, the entire collected amount must go to employees. These requirements apply specifically to New York City, so do not assume every restaurant elsewhere in New York State follows the same local rules.
Washington, D.C., Limits Certain Restaurant Service Fees
There is a percentage limit on covered service fees. Under a law effective May 21, 2024, licensed restaurants in Washington, D.C., generally may charge percentage-based service fees of up to 20%, with an exception allowing up to 25% for certain services covered by negotiated written contracts, including banquets.
The law also requires restaurants to display information about these fees on menus, their websites if they have one, and signs customers can see when entering. Businesses must explain the fees’ purposes, including how much goes toward operating expenses and how much provides employee compensation above the applicable minimum wage.
D.C.’s attorney general has also advised that businesses cannot hide fees until the final bill or use them for purposes different from those disclosed to customers. If an unexpected fee appears, you can ask the restaurant to explain the charge before paying.
Restaurant fee rules vary by state, but one habit works everywhere: check the menu, ask about mandatory charges, and review your bill before adding a tip.
