Allowing a food service establishment surcharge, and to repeal local law number 100 for the year 2020, relating to a COVID-19 recovery charge.

A Local Law to amend the administrative code of the city of New York, in relation to allowing a food service establishment surcharge, and to repeal local law number 100 for the year 2020, relating to a COVID-19 recovery charge.

Current City rules prohibit restaurants from adding surcharges to listed food and drink prices. This bill would allow restaurants to impose a “Food Service Establishment Surcharge” of up to 15 percent of a customer’s total bill, as long as restaurants pay their tipped workers a cash wage that is not less than the City’s minimum wage of $15 per hour. Tips received by such workers would not be credited towards the hourly cash wage. The surcharge would have to be clearly disclosed on the menu, final bill and receipt, and the disclosure must be explicit that the additional charge is not a gratuity.