Key Points

• Florida's new "operations charge" disclosure requirements are broad and take effect July 1, 2026.
• Enforcement is administrative, not private, but the consequences are still significant.
• Coverage is expansive with very limited exceptions, clients must act proactively.

Florida businesses that add mandatory fees onto customers' bills will soon face new disclosure rules under amendments to a Florida statute that take effect July 1, 2026.

The Relevant Law

Prior to the amendments, Florida Statutes Section 509.214 required food service establishments to notify guests of any automatic gratuities that it assessed. The amendments expanded the scope of the mandatory charges that businesses must disclose to consumers. Now, business must disclose clearly any “operations charge” that is assessed.

Operations Charge – Definition and Examples

An “operations charge” is defined by the law as “an automatic fee or charge, other than a government-imposed tax, that a customer is required to pay in addition to the cost of the food or beverage purchased.”

While the law identifies several examples, it also explains that its list is non-exhaustive. Service charges, automatic gratuities, credit card surcharges and delivery fees are all included and therefore must be disclosed. In short, any automatic, mandatory or similar fee or charge, outside of a government-imposed tax, likely satisfies the definition of an operations charge and must be disclosed to consumers.

Notice Requirement

Any public food service establishment that charges an operations charge must include a notice on the food menu, in any written contract, and the website or mobile application where food and beverage orders are placed.

This notice must include:

• The amount or percentage of the operations charge.
• The purpose of the operations charge.

The notice must appear in a font that is “equal to or greater than the font used for menu item descriptions or the general provisions of the written contract”.

If there is no menu, table service, or written contract for a banquet, catering or event service, the notice must appear “in an obvious and clearly readable manner” on the menu board or “on an obvious and clearly readable” sign by the register where the customer pays.

Clarity on Bills and Receipts

A similar notice must be provided to customers on the final bill, specifying that an operations charge was included and identifying the percentage or amount of the charge. Unlike with menus, contracts, and websites, the final bill provided to the consumer at the end of the dining experience does not need to explain the purpose of the operations charge.

Any receipts given to the customer after the bill is paid, must contain separate lines for gratuity, mandatory gratuity, other operations charge(s) and sales tax, so that they are clearly labelled and identified to the customer. Notably, the law requires that mandatory gratuities be separately identified on the receipt, despite being included in the definition of “operations charge”.

As a reminder, unlike ordinary gratuities, “mandatory” gratuities are treated like any other mandatory charge; they are general revenue to the business subject to applicable sales tax. If an employer distributes any mandatory gratuity to its employees, these distributions may also alter the employees’ regular rate of pay and the proper overtime calculation. Further, such monies cannot be used to offset any tip credit taken by the employer. Mislabeling mandatory gratuities may lead to additional financial and legal liability and may increase the risk of wage-and-hour claims.

Who Enforces the Law?

Importantly, the statute does not create a private right of action, so “aggrieved” consumers and employees cannot file claims in court against a business for purported violations. Instead, the law will be enforced by the Florida Department of Business and Professional Regulation (Department), through inspections and administrative proceedings.

If a violation is found, the Department may issue administrative fines ranging from $100 to $1,000 per violation. Additionally, businesses may face licensing consequences for repeat or egregious violations.

Exceptions to the Law

There are almost no exceptions to the law’s coverage. The law covers businesses regardless of their size. Further, while the law applies to “public food service establishments,” this term is more broadly defined to include most private clubs. Indeed, the law defines a “public food service establishment” as any place where food is regularly prepared, served or sold for immediate consumption on or near the premises, or for delivery.

There is a limited statutory exclusion from the definition for an eating place that is both:

• Maintained and operated by a religious nonprofit fraternal or nonprofit civic organization.; and
• Used solely by members and their associates, rather than by the public at large. Such organizations may conduct temporary services to the public for certain events such as fairs, carnivals, food contests, cook-offs, or athletic contests without losing this statutory exclusion.

If both conditions are met, the law does not apply; otherwise, it does.

There is an additional exception for specific purchases of a dining plan or package, or a fixed-price meal for which the price is fully disclosed to the customer before purchase.

Next Steps

Affected businesses should contact legal counsel to determine whether their current menus, websites, bills, point-of-sale systems and receipts comply with the law. Event and similar contracts should also be updated to reflect these new requirements. Businesses should not expect third-party websites or point-of-sale systems to automatically comply. When a disclosure is not made, it is the business that is ultimately responsible. Legal counsel can help to ensure that your business meets these requirements moving forward.

For more information on this and related topics, contact authors Carolyn D. Richmond crichmond@foxrothschild.com, Glenn S. Grindlinger ggrindlinger@foxrothschild.com, Diane Geller dgeller@foxrothschild.com, or Ryan W. Lee at rwlee@foxrothschild.com.

This information is intended to inform firm clients and friends about legal developments, including the decisions of courts and administrative bodies. Nothing in this alert should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this alert without seeking the advice of legal counsel. Views expressed are those of the authors and not necessarily this law firm or its clients.