This bill mandates that restaurants disclose any mandatory gratuity charges to patrons in a clear and prominent manner. Specifically, the disclosure must be made on the menu, at the restaurant's entrance, on the patrons' bills, and on the restaurant's website if applicable. The bill aims to enhance transparency for consumers regarding additional charges they may incur while dining out.

Violations of this disclosure requirement will result in civil penalties, starting at $1,000 for the first offense, escalating to $2,500 for the second offense, and $5,000 for the third and any subsequent offenses. Each day a violation occurs is considered a separate offense, although a person cannot be charged with more than one violation per day. The penalties will be enforced through civil actions under the Penalty Enforcement Law of 1999. The bill is set to take effect on the first day of the third month following its enactment.