Florida Bill Could End Automatic Gratuities at Restaurants

A state bill making its way through Tallahassee could transform how Miami restaurants handle automatic gratuities. It could potentially end the increasingly common practice of adding preset tip percentages to bills for smaller parties.

House Bill 535, which passed its first committee stop, would restrict automatic gratuities to parties of six or more people and require that these charges be calculated on the pre-tax amount. The legislation would also give diners the right to refuse automatic gratuities if they're not satisfied with the service.

The Fine Print and a State Representative's Personal Experience

If passed, restaurants would need to clearly disclose on menus, bills, and electronic payment screens whether an automatic gratuity or service charge is included. They would also need to specify who receives the gratuity and what percentage they get - bringing transparency to a practice that has left many Miami diners scratching their heads at check time.

The amendment was added to HB 535 by State Rep. Demi Busatta, representing Coral Gables, who experienced firsthand the confusion these fees can cause. "Most customers might presume that service fees go to a server, but what's really happening is that service fees are going to restaurants to meet overhead costs," Busatta tells the South Florida Sun Sentinel. "This confusion is what's frustrating to the customer and frustrating from an employee standpoint."

Busatta says she proposed the amendment after a personal experience at a Miami restaurant where she received a check that failed to mention a service fee and automatic gratuity, leading her to ask for an itemized bill. "The restaurant used three different ways to describe this charge beyond food and beverage," Busatta says. "But who are these fees going to?"

@nbcsouthflorida A Florida lawmaker’s proposal to crack down on automatic gratuity and service charges at restaurants is now part of a bill going through the State House. For parties with six or more guests, the amendment says guests may not be required to pay for the gratuity or service charge if someone in the party complains to a manager about the quality of service. State Rep. Demi Busatta, R-Coral Gables, proposed the amendment after receiving a bill at a restaurant in Miami earlier this month that had both a service fee and a pre-set gratuity. #tips #restaurant #florida #server ♬ original sound - NBCSouthFlorida

How It Affects You

For Miami's restaurant scene, where automatic 18 to 20 percent service charges have become the norm at many spots, the bill could represent a significant shift in how diners and restaurants interact.

A recent Reddit thread in r/Miami showed locals are increasingly frustrated with the lack of transparency. As one Reddit user put it, "Some places with portable card readers are flat out scamming people by quietly adding the service charge automatically, and then presenting customers with an extra tip screen with 18 percent, 20 percent, and 25 percent options hoping you'll end up leaving 40 percent total."

According to payment system company Square, the percentage of restaurant transactions that include a service fee has nearly tripled since early 2022, jumping from 1.27 percent to 3.7 percent in 2024. The company also reported that Florida restaurant workers receive an average tip of 15.66 percent on checks, with tips making up about 21 percent of their income.

The Florida Restaurant and Lodging Association, in a statement to Nation’s Restaurant News, expressed concerns that the changes could hurt Florida businesses trying to make sure staff are properly paid, particularly given the city's status as an international destination where visitors from countries without tipping cultures might not otherwise leave gratuities.

What's Next for The Bill?

For the amendment to become law, it will need to survive further committee stops and be added to the Senate's companion bill, SB 606, which currently doesn't include the automatic gratuity provisions. Both bills have passed their first committee stops.

Busatta says she's confident the bill will pass: "The amendment language I added passed with unanimous support on both sides of the aisle. It still has two more stops in the House and then the Senate, so I'll stay on top of it."

If passed, the law would take effect on July 1, 2025, giving Florida restaurants time to adjust their practices and update their menus and payment systems.