Florida Service Charge Laws: The Real Scoop on Fees, Surcharges, and Automatic Gratuity

In Florida, it’s not unusual to see a “service charge,” “convenience fee,” or “automatic gratuity” on your bill at a restaurant, hotel, event venue, or even when booking something online. But what do the laws actually say? Can businesses in Florida add service charges? Who gets the money? And how is this different from a tip? Here’s a straightforward guide to Florida’s service charge laws, perfect for both consumers and business owners.

What Is a Service Charge?

A service charge is a mandatory extra fee added by a business to your bill. It’s not the same as a tip, and it’s not optional. You might see it as an “automatic gratuity” at a restaurant, a “facility fee” at a hotel, a “convenience fee” on a ticketing website, or even a “processing fee” when you pay online.

Example: A restaurant adds 18% to a bill for large parties as a “service charge.”
Example: A hotel adds a nightly “resort fee.”
Example: An online ticket seller charges a “convenience fee.”

Are Service Charges Legal in Florida?

Yes, service charges are legal in Florida, but they must be disclosed honestly and clearly before you agree to pay. There’s no single law covering every type of service charge, but these key rules apply:

Full disclosure: Florida’s Deceptive and Unfair Trade Practices Act (Fla. Stat. § 501.201 et seq.) requires all fees—including service charges—to be disclosed up front, so customers know what they’re paying before agreeing to a transaction. No surprise or hidden charges allowed!
Honest labeling: It’s illegal to mislabel a required fee as a “tip” or “gratuity” if it isn’t voluntary. If a fee is mandatory, it must be clearly labeled as a service charge or similar, not a tip.
Credit card surcharges: Florida used to ban surcharges for using credit cards, but that restriction was overturned in 2015. Now, businesses can add a surcharge for credit card payments as long as they disclose it up front. Surcharges for debit cards, however, are generally not allowed.

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Service Charges vs. Tips: Why It Matters

Florida law, like federal law, draws a clear line between service charges and tips—especially when it comes to employee pay:

Service charges are required, and the money belongs to the business. The business decides if, and how, any of the charge is shared with staff. These charges can be used to help meet minimum wage requirements for employees.
Tips (gratuities) are voluntary payments left by customers and legally belong to employees, although some tip pooling is allowed under the law.
Employers must be clear on menus, contracts, or receipts about which is which. Calling a service charge a “tip” when it’s not voluntary can get a business in trouble.

Common Service Charges in Florida

Restaurant service charges: Often added automatically for large groups or banquets. Some restaurants now add a “living wage fee” or “hospitality charge” to all bills—always check your menu or receipt.
Hotel resort/facility fees: Hotels may add nightly fees for pool use, Wi-Fi, or other amenities. These must be disclosed at the time of booking—not just at check-in.
Credit card surcharges: Allowed for credit card payments if disclosed before you pay, but not for debit cards.
Delivery, processing, and convenience fees: Common with food delivery apps, ticket purchases, or utility payments.

Can You Refuse to Pay a Service Charge?

If the service charge was disclosed before you agreed to pay—on a menu, website, booking page, or receipt—you generally have to pay it. If you’re surprised by a hidden fee or one that wasn’t disclosed, you can dispute it or file a complaint with the Florida Attorney General’s Consumer Protection Division.

Are Service Charges Taxed in Florida?

Most mandatory service charges are subject to state and local sales tax in Florida—just like the rest of your purchase. Voluntary tips are not taxed as part of the sale.

Employer Rules: Service Charges and Employee Pay

When a business collects a service charge, it belongs to the business, not automatically to employees. The employer may choose to share it with staff, but is not required to unless promised. Employees should review their pay stubs and speak up if they’re unsure how charges are distributed.

How to Spot and Avoid Surprise Fees

Check menus, websites, and booking screens for any mention of extra fees or service charges before you agree to pay.
Ask up front: “Are there any mandatory service charges or extra fees on top of the listed price?”
If you’re surprised by a charge, ask for clarification or contact the Florida AG’s office if you think the fee was hidden or deceptive.

Helpful Resources

Final Thoughts: Florida Service Charges—Legal, But Must Be Disclosed

Florida businesses can add service charges, but they must be upfront and honest about it. If you’re a customer, your best move is to read carefully, ask questions, and speak up if you spot a fee that wasn’t disclosed. If you’re a business owner, transparency and accurate labeling are your best tools for keeping customers happy and staying out of legal trouble.