A new law effective July 1, 2026, will significantly change how Florida restaurants, catering businesses, and food service providers disclose fees to customers. Known broadly as the “operations charge” law, this update introduces stricter transparency requirements for restaurants and hospitality businesses that apply service fees, administrative charges, or similar add-ons to customer bills.
For restaurant owners and operators, understanding these changes is critical to staying compliant and maintaining customer trust.
What Is the New Law?
The “operations charge” law requires businesses to clearly disclose all mandatory fees added to customer bills. This affects not only menu updates but also pricing, payroll, compliance, and staff training.
Restaurant owners, hospitality operators, and multi-location businesses should understand this law now to avoid future compliance risks.
What Is an “Operations Charge”?
Under the new law, an “operations charge” is broadly defined as any mandatory fee added to a customer’s bill that is not a government-imposed tax. This includes:
- Service charges
- Automatic gratuities
- Delivery fees
- Credit card surcharges
- Any similar required add-on
This expanded definition covers nearly any non-optional fee, not just automatic gratuities, broadening the law’s scope.
However, under the new law, simply adding the charge is not enough. How you communicate it matters.
Why This Law Matters
The law aims to improve transparency by eliminating surprise fees and requiring clear, upfront communication with customers.
For employers, the impact is more extensive.
The law introduces new compliance obligations in several areas, including:
- Customer-facing materials
- Technology systems
- Payroll and wage practices
- Employee communication
Noncompliance may lead to regulatory scrutiny from the Florida Department of Business and Professional Regulation (DBPR), as well as possible fines and licensing issues.
New Disclosure Requirements
A key change is the requirement to clearly disclose operations charges at multiple customer touchpoints.
1. Menus, Websites, and Ordering Platforms
All operations charges must be disclosed before the customer completes a purchase. This applies to:
- Printed menus
- Online ordering platforms
- Mobile apps
- Catering contracts
The disclosure must include both:
- The amount or percentage of the charge
- The purpose of the charge
Notices must use a font size equal to or larger than surrounding text and cannot be hidden in fine print.
2. Bills and Receipts
Businesses must also update billing practices to maintain transparency.
Customer receipts must:
- List operations charges as a separate line item
- Separate gratuity, operations charges, and taxes
- Clearly identify any automatic gratuity included within a charge.
This itemization helps customers understand each charge on their bill.
3. In-Store Signage
For businesses without traditional menus, such as quick-service or counter-service establishments, the law requires:
- Clear signage at the point of sale
- Readable and visible placement near registers
This ensures consistent transparency for all customers, regardless of ordering method.
The Wage and Hour Impact
Beyond customer disclosures, one of the most critical aspects of this law involves wage and hour compliance.
The law reinforces the legal distinction between:
Tips (Gratuities):
- Voluntary
- Controlled by the customer
- Belong to the employee
Operations Charges:
- Mandatory
- Controlled by the employer
- May or may not be distributed to employees
This distinction is important because operations charges can affect:
- Overtime calculations
- Regular rate of pay
- Tip credit eligibility
If operations charges are distributed to employees, they may need to be included in the regular rate of pay, which can affect overtime calculations.
Employers who previously blurred the line between tips and service charges must now clearly define, disclose, and align their practices to reduce risk.
Key Compliance Steps for Employers
Florida hospitality employers should take proactive steps to prepare for the July 1, 2026 effective date.
Audit Your Current Fees
Identify all mandatory customer charges. If a fee is required, it likely qualifies as an operations charge under the law.
Update Customer-Facing Materials
Review and revise:
- Menus
- Websites
- Mobile apps
- Catering contracts
Ensure all disclosures are clear, visible, and meet font and content requirements.
Review POS and Receipt Systems
Coordinate with your point-of-sale provider to ensure:
- Proper itemization of charges
- Separate listing of gratuity, operations charges, and taxes
Align Payroll and Compensation Practices
Review how operations charges are managed internally. Ensure the following are consistent with both federal and state wage laws:
- Payroll processes
- Overtime calculations
- Tip credit practices
Train Your Team
Front-of-house staff and managers should be prepared to answer customer questions. Ensure they understand:
- What an operations charge is
- Why it exists
- How it is used
Clear communication helps prevent confusion and enhances the customer experience.
Consult Legal or Compliance Experts
Because the law involves consumer protection and wage-related implications, it is wise to review your approach with professionals to ensure full compliance.
Additional Considerations
This law sets a statewide baseline, but local ordinances may impose additional requirements. Businesses operating in multiple Florida jurisdictions should review applicable local rules.
While customers do not have a private right of action, state regulators enforce the law. Compliance will likely be reviewed during inspections or licensing processes.
How Worksite Helps Florida Hospitality Employers
Navigating regulatory changes can be challenging, especially for businesses already managing staffing, payroll, and daily operations.
That is where Worksite comes in.
Worksite’s PEO model helps Florida hospitality businesses simplify and strengthen compliance in several areas, including:
- Payroll processing and wage calculations
- HR support and policy alignment
- Guidance on regulatory changes and workforce practices
- Risk management and workers’ compensation support
When laws affect both customer-facing practices and internal payroll, having the right partner is essential.
Our goal is to help business owners focus on delivering excellent service while we support the backend processes that keep operations running smoothly.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Laws and regulations may change. Business owners should consult a qualified professional to ensure compliance with current requirements.
