Florida operations charge disclosure law for restaurants

Florida requires a restaurant that adds an automatic charge to disclose it in four places: the menu, any website or app where guests order, the bill and the receipt. Section 509.214 of the Florida Statutes calls these automatic charges operations charges, and the receipt must show gratuity, operations charge and sales tax on separate lines. If you add any fee to the price of food and drink, check each place the guest sees a price.

What counts as an operations charge in Florida?

The statute defines an operations charge as an automatic fee or charge, other than a government-imposed tax, that a customer must pay in addition to the cost of food and beverages. It names service charges, automatic gratuities, credit card surcharges and delivery fees as examples. A gratuity or tip, by contrast, is a voluntary sum the customer gives, with the amount left to the customer's discretion.

That distinction matters. A 20 percent charge added to every table of six is an operations charge, even if the menu calls it a gratuity. A tip line the guest fills in is a gratuity.

Where must you disclose the charge?

If you charge an operations charge, the law says you must show its amount or percentage and its purpose on:

• the food menu
• any written contract, such as a catering or banquet agreement
• any website or app where orders are placed

The notice has to be in a font at least as large as the menu item descriptions, or as the general provisions of a contract. If you have no menus, table service or written contracts, put the notice on the menu board or on a clearly readable sign by the register.

What must the bill say?

The bill must include a notice that an operations charge is included, stating its percentage or amount. A guest who reads the bill should not meet the charge for the first time at the total.

How must the receipt look?

Each customer receipt needs separate lines for gratuity, operations charge and sales tax. If the operations charge includes an automatic gratuity, the receipt must state that automatic gratuity separately. Check your point of sale templates, because many print a single line labeled service.

Who is exempt?

The section does not apply to a dining plan, package or fixed-price meal whose price is disclosed to the customer before purchase. A prix fixe menu with the price printed on it is an example.

What happens if you get it wrong?

The statute says it does not create a private right of action, which means a guest cannot sue under this section alone. The Division of Hotels and Restaurants and other authorities can still act, and a mislabeled charge can also raise issues under consumer protection rules. Ask an attorney how the statute interacts with your own policies.

How do you set up for the law?

1. List every automatic charge you add, including delivery, large-party and card fees.
2. Put the amount or percentage and the purpose on the menu, the website and the ordering app.
3. Match the type size to your item descriptions.
4. Add the notice to the bill template.
5. Split the receipt into gratuity, operations charge and sales tax.
6. Train servers to answer, in one sentence, what the charge pays for.

Florida's statute against card surcharges was struck down in 2015, and the guide on card surcharge rules explains what that means. Because section 509.214 lists card surcharges as operations charges, a restaurant that adds one must disclose it under both sets of rules, so read the two guides together.

What does a compliant menu line look like?

Keep the wording short and specific. For example: A 20 percent service charge is added to parties of six or more and is paid to the service team. Or: A $3 delivery fee covers driver costs. A vague line such as a fee applies to your order does not state a purpose, and the statute asks for the purpose as well as the amount. If the charge supports several things, say the main ones.

Place the line where the guest decides, not only where the guest pays. On a website, that means the page where the item is chosen and again at checkout. In a printed menu, it means near the prices rather than on the back cover. If the charge differs by event, put the rule in the written contract and repeat it on the final invoice.

Who should own the checklist?

Pick one person, usually the general manager, to own a quarterly check. Walk through the menu, the website, the ordering app, the bill and the receipt, and compare each to the current list of charges. Menus drift, and the website is often updated by someone who is not the person who changed the fee. Keep the date of each check in a file. If a regulator asks, a record of regular checks shows good faith, and it catches the stale menu before a guest does.

More guides for your business:

• Florida credit card surcharges: the statute, the 2015 ruling and today
• Florida tip pooling and service charges for restaurants
• Florida restaurant sales tax: the 6 percent rate and county surtax

More in the US guides for food businesses.