Sponsored by:
Assemblyman DAN HUTCHISON
District 4 (Atlantic, Camden and Gloucester)
Assemblyman MICHAEL VENEZIA
District 34 (Essex)
Assemblyman WILLIAM B. SAMPSON, IV
District 31 (Hudson)
Co-Sponsored by:
Assemblyman Miller and Assemblywoman Reynolds-Jackson
SYNOPSIS
Requires restaurant to disclose mandatory gratuity to patron and makes failure to disclose unlawful practice under consumer fraud act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning mandatory gratuities at restaurants and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. It shall be an unlawful practice for any person to charge a mandatory gratuity in a restaurant without disclosing, in a prominent manner, the gratuity on the menu, at the entrance of the restaurant, on a patron’s bill, and if applicable, on the restaurant’s website.
2. This act shall take effect on the first day of the third month next following the date of enactment.
STATEMENT
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.
A violation of the bill is an unlawful practice under the consumer fraud act. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.