Overview
- The disclosure requirement took effect Wednesday, July 1, 2026, and applies to any public food service establishment that adds a mandatory operations charge.
- Restaurants must show the amount or percentage of the operations charge and explain its purpose on menus, websites, mobile apps and written contracts, and list the charge on a separate receipt line from gratuity and sales tax.
- The law defines operations charges as mandatory fees distinct from voluntary tips and does not ban service charges or automatic gratuities, it only requires prior disclosure.
- The statute bars a private right of action, meaning consumers generally cannot sue over disclosure violations and enforcement will rely on government or administrative action rather than individual lawsuits.
- Trade groups say transparency is desirable if rules are practical, while some owners warn the requirement could confuse diners and prefer folding costs into menu prices; the change follows similar transparency laws in California, Illinois and New York City.