Amanda Michelle Gomez / DCist/WAMU
D.C.’s Office of the Attorney General is attempting to demystify restaurant service fees, which have become increasingly common after District residents voted to phase out the tipped minimum wage structure in November.
The AG’s office on Wednesday offered examples of service fee disclosures that comply with local consumer protection law, marking the first time the local government has offered specific language on how a restaurant might want to approach the contentious service fee.
While service fees are legal, they can run afoul of the law if restaurant operators do not accurately and prominently disclose these extra charges to patrons before they place their order. “A good rule of thumb for restaurants is to communicate service fee information in the same manner that they communicate their prices,” the OAG’s guidance says.
The OAG underscored in its guidance that compliance with consumer protection law will be determined on a case-by-case basis, depending on the “unique facts of each case.” Here are the examples of service fees that comply with the law and ones that do not:
Screenshot of OAG guidance
Screenshot of OAG guidance
Screenshot of OAG guidance
Screenshot of OAG guidance
Screenshot of OAG guidance
Service fees are typically a percentage of the total sales added on to a bill. Unlike tips, which are required to go to workers, however, there is no legal requirement for how service charges are spent.
The OAG released this guidance...
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