§ 5-59 Restaurant Surcharges.
RCNY § 5-59
(a)A seller serving food or beverages for consumption on the premises may not add surcharges to listed prices. For example, a restaurant may not state at the bottom of its menu that a 10 percent charge or a $1.00 charge will be added to all menu prices.
(b)A seller may impose a bona fide service charge if the charge is conspicuously disclosed to the consumer before food or beverage is ordered. For the purpose of this subdivision, a bona fide service charge is a fee charged for services requested by a consumer, over and above what is included with the consumer’s purchase of a menu item, including, but not limited to, an added charge for two persons splitting one meal, a mandatory gratuity for parties of eight or more, or a per person minimum charge.
(c)Notwithstanding any other provision of this title, a seller may impose a charge required by a written agreement, including but not limited to a collective bargaining agreement, between a seller and its employees, if the charge is conspicuously disclosed to the consumer before food or beverage is ordered and the full amount of the proceeds from such charge is provided to the seller’s employees; provided, however, that nothing in this subdivision shall be construed to supersede, alter or affect any provision of the New York Labor Law or any rule, regulation or wage order promulgated thereunder, including, but not limited to, section 196-d of the labor law and section 146-2.18 of Part 146 of Title 12 of the Official Compilation of Codes, Rules, and Regulations of the State of New York, relating to minimum wage and gratuities.
(d)In this section, the term "surcharge" does not include tax. (Amended City Record 3/20/2026, eff. 4/19/2026)
