Three significant laws are coming into effect on July 1st, 2024, that will influence how restaurants operate in California. These include SB 553, SB 1524 & SB 478, and the new minimum wage increase in San Francisco. Here’s a detailed look at each law and its implications for restaurant owners and operators.
SB 1524 (IT PASSED!) & SB 478: Service Charges and Transparency
SB 1524, introduced by California Senators Dodd and Wiener, aims to clarify the language and requirements of SB 478, which bans service charges and surcharges unless they are clearly disclosed. This bill, which passed the Senate today and is now to be signed by the governor, stipulates that any mandatory gratuity or service charge must be prominently displayed on menus, advertisements, or other displays.
Transparency in billing is crucial for maintaining trust with customers. Many restaurants and bars have used auto gratuity and service charges to support pay equity and offset costs like health care mandates. The passage of SB 1524 will allow these practices to continue, provided they are clearly communicated to customers. This helps restaurants support their employees fairly while ensuring customers are not surprised by their final bill.
SB 553: Workplace Violence Prevention Program
The new California law SB 553, effective July 1st, mandates that all employers implement a Workplace Violence Prevention Program (WVPP). This law defines workplace violence broadly to include any act or threat of violence that occurs in the workplace, affecting employees’ physical or psychological well-being. To comply, employers must provide “effective training” on developing and implementing the WVPP, recognizing workplace violence specific to their job, and strategies to avoid physical harm. You can learn more about this law here.
We’re developing an online course for employees, a comprehensive checklist and guidance to help clients meet these new requirements at no extra cost when using our monthly services or quarterly health audits. It will be ready shortly and we will let you know as soon as it is. Find out how to get this complementary course here.
Minimum Wage Increases
Effective July 1st, 2024, San Francisco’s minimum wage will increase to $18.67 per hour, one of the highest rates in the state. Other cities in California, such as Berkeley and Emeryville, are also implementing similar increases, making it essential for restaurant operators to adjust their financial strategies accordingly. You can find more details here.
Alameda $17.00
Berkeley $18.67
Emeryville $19.36
Fremont $17.30
Los Angeles $17.28
Los Angeles County (unincorporated) $17.27
Malibu $17.27
Milpitas $17.70
Pasadena $17.50
San Francisco $18.67
Santa Monica $17.27
Cal/OSHA Heat Illness Prevention Standard
On June 20, 2024, the Occupational Safety and Health Standards Board approved California Code of Regulations, Title 8, section 3396, “Heat Illness Prevention in Indoor Places of Employment.” This standard applies to most workplaces where the indoor temperature reaches 82°F, establishing required safety measures to prevent heat illness. The Office of Administrative Law (OAL) has 30 working days to review the proposal, and the regulation is set to take effect immediately after OAL approval. We’ve written a whole blog post to help! Tips for Keeping Cool in the Kitchen: Soon to be The Law.
