Hawaii HB852 regulates service charges in hotels and restaurants, requiring disclosure and limits on mandatory gratuity charges.

Hawaii HB852 amends the statutes to regulate service charges in hotels and restaurants. It mandates that any service charge applied for food or beverage services must be distributed directly to employees as tip income or clearly disclosed to the customer. For restaurants, a mandatory gratuity service charge can only be applied to parties of ten or more customers, must not exceed 18% of the total bill, and requires prior verbal notification to the customer. Additionally, the menu must prominently display a notice about the mandatory gratuity service charge and its percentage.

Hawaii HB852 regulates service charges in hotels and restaurants, requiring disclosure and limits on mandatory gratuity charges.

Hawaii HB852 amends the statutes to regulate service charges in hotels and restaurants. It mandates that any service charge applied for food or beverage services must be distributed directly to employees as tip income or clearly disclosed to the customer. For restaurants, a mandatory gratuity service charge can only be applied to parties of ten or more customers, must not exceed 18% of the total bill, and requires prior verbal notification to the customer. Additionally, the menu must prominently display a notice about the mandatory gratuity service charge and its percentage.