Automatic tips could soon be at the table in Florida restaurants

West Palm Beach, Fla. (CBS12) – They put themselves on their meals and eat them – but when the check arrives, there is a surprise that they have not seen: an automatic tip for 18 or 20%that have been added to their invoice. No questions.

Now a new draft law that comes through the Florida legislation, HB 535, could change the way in which restaurants deal with tips and service fees – and the heated debate updates.

This legislation entitled “Public Facilities for Public Food Services” would make it easier to remove restaurants and hotels to remove customers who do not pay their bill, but a change that is submitted to the invoice is attention. It is aimed at automatic service fees and drinking money, especially for smaller parties.

For guests like Brandon Woody, automatic service fees can feel like a punishment than an advantage.

“Sometimes it's a disappointment,” said Woody. “Sometimes I just want to make sure that the service was great and the food was great and that even the atmosphere and everything I want to experience before I am forced to set 20% as a tip.”

He is not against a tipping – he only wants to be the one who has control.

“I still think that everyone should be tilted – I'm usually a tipper of 10 to 15%,” said Woody. “I just don't like people making the decision for me.

Sasha Aronberg repeats frustration at surprise costs, and even worse if they are not disclosed in advance.

“I have a bigger problem if you don't tell you when a service fee is available,” she said. “And it happens more often now.”

For them, the tip should still reflect the experience.

“Service fees – I mean, they are based on the service, right?” Said Aronberg. “So if it is an automatic fee, you cannot really rely on this percentage on the service you receive.”

If HB 535 passes, Florida restaurants could not charge automatic tips for parties of six or less.

In addition, the calculation of restaurants would require you to disclose these fees in advance – on the menu and the receipt – so that the guests know exactly where their money is going.

For larger groups of seven or more, guests would have the right to choose from the service fee if they believed that the service was not up to date.

The Florida Restaurant and Lodging Association (FRLA) stands against the change and says that it would harm restaurants that are already struggling with increasing costs.

Samantha Padgett, Vice President of Government Relations and General Counsel of the Florida Restaurant and Lodging Association, says that the service fees are an essential tool with which restaurants can remain afloat – especially in difficult times.

“Service fees can be used for a number of reasons, and they are an excellent instrument to help restaurants, to be successful and to offer excellent service and a great payment payment,” said Padgett.

It explains that the service fees can help to cover overhead costs such as credit card processing fees and to offer the workers in the back of the house who do not receive any tips.

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“It helps restaurants to compensate for the rapidly growing costs for the processing of credit cards,” she said. “In the state of Florida there is the possibility to submit a service fee so that they can return employees who are not entitled to tips, health services.”

Padgett admits that guests should have more transparency about where their money leads, but she warns that stringing this option could backfire.

“Every notification via a service fee to a customer should be large, brave and obvious and give the customer a choice,” said Padgett. “You should make a knowing choice whether you want to visit this business and pay this service fee.”

However, she says that the elimination of the service fee could increase costs or even reduce the payment of the staff.

“We believe that this change is not in the best interest of restaurants, in the best interest of your employees and ultimately in the best interest of customers – since this can affect your service or can affect the prices you pay in restaurants.”

It is not just Florida – culture culture is a nationwide conversation. A recent 90% of the Americans in the Wallethub survey believe that a tip is “out of control”.

In fact, 83% of those surveyed stated that automatic service fees should be banned. About half of the Americans admitted that due to social pressure they often give a tip, not necessarily on service quality.

HB 535 has only released its first time in the Florida house – which means that there is still a long way to become a law.

If it passes the house and the Senate and is signed by the governor, it would come into force on July 1st.

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