Restaurants across the state have been reconsidering pay models in the new COVID-19 era. We have received several questions about “COVID surcharges” -- especially surrounding the legal considerations and whether restaurants can transition to this pay model. If you have questions about these surcharges, or if you need more guidance on the pay model you are considering, please reach out to us at firstname.lastname@example.org. We can answer your questions or pair you with an attorney in our Legal Resource Center.
What many restaurants are calling COVID surcharges are really service charges, and they are subject to the same considerations. Service charges are amounts of money, typically a percentage of the total bill, that are added on to the pre-tax portion of the customer receipt. Service charges are also commonly known as auto-gratuities.
There are some key considerations to keep in mind if you are exploringaCOVID surcharge for your restaurant:
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