HB852

Hawaii HB852 regulates service charges in hotels and restaurants, requiring clear disclosure of their use.

Hawaii HB852 amends existing statutes to regulate service charges in hotels and restaurants. It mandates that any hotel or restaurant applying a service charge for food, beverage, or porterage services must either distribute the charge directly to employees as tip income or clearly disclose to the customer that the charge is being used for costs or expenses other than wages and tips. For restaurants, a mandatory gratuity service charge for food or beverage services is only allowed for parties of ten or more customers, and it must not exceed 18% of the total bill.