A wide range of extra fees have flooded the DC dining scene over the past year, creating confusion and frustration among diners. Among the biggest issues: where exactly is this money going and how much, if anything, should customers tip? Today, DC’s Office of the Attorney General issued more guidance to businesses about fee transparency, offering examples of what—and what isn’t— compliant with the law.
Service fees have become ubiquitous in the wake of Initiative 82—the ballot measure DC voters passed last fall to eliminate the “tip credit” that allows businesses to use gratuities toward workers’ base wages. The new law, which will phase out the tipped minimum wage over the next few years, means that local restaurants are moving from paying servers, bartenders, and other tipped workers at least $5.35 an hour to a universal minimum wage of at least $17. To make up for those labor costs, many restaurants have introduced mandatory service fees. At the same time, many businesses have tacked on a range of other fees related to inflation, Covid recovery, and more. It’s the wild west of extra charges, which can range from three to 22 percent and often come with vague disclosures.
The Ultimate Guide to Restaurant Service Fees
DC attorney general Brian Schwalb put out a consumer alert in March about deceptive restaurant fees following an influx of complaints from customers. The big message: The type of fee and its amount must be “clearly and prominently” disclosed before customers...
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