The proposed bill aims to regulate restaurant surcharges in Minnesota by prohibiting any surcharge that exceeds five percent of the total cost paid by customers. It establishes a new section in the Minnesota Statutes, specifically [325E.85] RESTAURANT SURCHARGES, which defines a surcharge and clarifies that it does not include gratuities or government-imposed taxes. Additionally, if a restaurant includes an obligatory gratuity, customers must have the option to modify the amount charged.
Furthermore, the bill mandates that restaurants provide clear and conspicuous disclosure of any surcharge before a customer places an order. This disclosure must be prominently displayed on menus or other printed materials, including the specific percentage of the surcharge. The bill also states that penalties and remedies outlined in section 8.31 will apply to any violations of these regulations, ensuring compliance and consumer protection.