California's junk fee ban under SB 478 will prohibit mandatory service fees at restaurants and bars, potentially forcing businesses to raise prices or revert back to tipping systems.
The law aims to address inequalities in the tipping system, where fees often help cover expenses like employee health care costs mandated in cities such as San Francisco.
Many restaurant owners fear the ban will result in price hikes, while others worry about the potential return of tipping systems that can promote discriminatory practices.
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