Posted on: September 16, 2020 04:00 PM

Share : Facebook Twitter Email Whatsapp

NYC Council passed the bill 823B to add surcharge bill for eateries

Today, the NYC Council passed the COVID surcharge bill, 823B. The bill allows restaurant owners to charge 10% surcharge to customers passed by 42-6. Now this legislation will be sent to Mayor de Blasio, who will soon sign the bill into law, and then it takes effect immediately once signed.

Here are some details:

Restaurants can use a surcharge from the law's effective date until they may operate at maximum indoor capacity and 90 days thereafter.

Must call it a "COVID-19 Recovery Charge" and clearly disclose the amount of such surcharge to the consumer before any item is ordered by placing it at the bottom of each menu page supplied to the consumer, etc.

Surcharge may not exceed 10% of a consumer's total bill.

The written disclosure must be explicit that it is not a gratuity for employees.

This is from the city council, Restaurants have struggled since the onset of COVID-19 and the associated in-person dining restrictions went into effect, forcing many out of business with many others barely surviving. However, current rules prohibit restaurants from charging any fees other than the listed price of food and drink, even if such surcharge is clearly disclosed. This bill would help restaurants by temporarily allowing them to add a ?COVID-19 Recovery Charge? of up to 10% of a customer?s total bill. The menu and bill would need to clearly disclose this charge. This surcharge would be permitted until 90 days after full indoor dining is once again permitted.