LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 5735

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 23, 2025

 

 

SUMMARY

 

Synopsis:

Requires restaurant to disclose mandatory gratuity to patrons.

Type of Impact:

Annual State expenditure and revenue increases.

Agencies Affected:

The Judiciary: Department of Law and Public Safety.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

Annual 

 

 

State Expenditure Increase

 

Indeterminate

 

 

State Revenue Increase

 

Indeterminate

 

 

 

·         The Office of Legislative Services (OLS) finds that the Judiciary will incur an indeterminate increase in annual operating expenditures, as additional resources will likely have to be allocated to any increase in civil caseload from the provisions of this bill.  The OLS also anticipates collections from court filing fees to grow in tandem with the caseload.

·         The Department of Law and Public Safety may incur additional workload from the enforcement of civil penalties established by this bill. 

 

 

BILL DESCRIPTION

 

      This bill requires a restaurant to disclose a mandatory gratuity charge to a patron on the menu, at the entrance of the restaurant, on the patron’s bill, and if the restaurant operates a website, on the restaurant’s website.  Each point of disclosure is required to be in a prominent manner. 

      The bill supplements the consumer fraud act, P.L.1960, c.39, but does not apply the act’s penalties.  Violators of the bill’s provisions are subject to a civil penalty of $1,000 for first offense, $2,500 for a second offense, and $5,000 for a third or subsequent offense.   For violations of a continuing nature, each day during which it continues constitutes an additional, separate, and distinct offense.  However, the bill provides that a person will not be charged with more than one violation per day.   A penalty imposed pursuant to the bill’s provisions is to be collected in a civil action under the Penalty Enforcement Law of 1999.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

        None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS notes that the Judiciary will incur an indeterminate increase in annual operating expenditures, as additional resources will likely have to be allocated to a potentially increased civil caseload from the new civil penalties established under this bill.  The OLS also anticipates collections from court filing fees to grow in tandem with the caseload.

 

 

Section:

Judiciary

Analyst:

Anuja Pande Joshi

Senior Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).