SB1256

Hawaii SB1256 regulates service charges in restaurants and hotels, prohibiting mandatory gratuities unless certain conditions are met.

Hawaii SB1256 amends the state's statutes to regulate service charges in restaurants and hotels. It prohibits restaurants from imposing a mandatory gratuity service charge unless the party includes ten or more customers and the charge does not exceed 18% of the total bill. The server must verbally notify the customer before the bill is paid. Hotels must distribute service charges directly to employees as tip income or clearly disclose that a mandatory gratuity service charge is applied to the bill.