Florida House passes bill regulating automatic gratuities in restaurants

Florida's House Bill 535 is stirring up conversations about tipping practices in the state's dining establishments. Introduced on March 14, 2025, this legislation aims to regulate automatic gratuities and service charges, a move that could reshape how patrons interact with their servers.

At the heart of the bill is a clear directive: restaurants must provide explicit notice when an automatic gratuity or service charge is applied. This notice must detail who receives the gratuity and the percentage involved, ensuring transparency for diners. Notably, guests will have the right to opt out of these charges upon request, a provision that advocates say empowers consumers.

The bill also stipulates that automatic gratuities cannot be included in the pricing for parties of fewer than six guests, a measure designed to protect smaller groups from unexpected charges. Furthermore, any gratuity based on food or beverage prices must be calculated before taxes, which could lead to more favorable outcomes for diners.

While the bill has garnered support for promoting transparency, it has also faced scrutiny. Critics argue that it could complicate the dining experience and potentially reduce overall tips for servers. The debate centers around balancing fair compensation for restaurant staff with consumer rights and expectations.

As the bill moves forward, its implications could ripple through Florida's vibrant dining scene. With an effective date set for July 1, 2025, restaurant owners and patrons alike are bracing for a shift in how gratuities are handled, potentially setting a precedent for other states to follow. The outcome of this legislation could redefine dining norms and influence the broader conversation about service industry compensation.