Restaurant Service Charge Fairness Act

Hozzl · 2024-12-19T09:06:10Z

Explore the details of House Bill 8401 Restaurant Service Charge Fairness Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Taxation. Stay informed on legislative developments.

12/19/2024, 9:06 AM

Summary of Bill HR 8401

The Restaurant Service Charge Fairness Act, also known as Bill 118 hr 8401, is a piece of legislation currently being considered by the US Congress. The purpose of this bill is to address issues related to service charges in restaurants.

Under the Restaurant Service Charge Fairness Act, restaurants would be required to clearly disclose to customers whether a service charge is being added to their bill, and if so, how that charge is being distributed among the restaurant staff. This transparency is intended to ensure that customers are aware of how their money is being used and that restaurant workers are fairly compensated for their service.

Additionally, the bill would prohibit restaurants from using service charges to supplement employee wages or to offset credit card processing fees. This is aimed at preventing restaurants from unfairly profiting off of service charges at the expense of their employees. Overall, the Restaurant Service Charge Fairness Act seeks to promote fairness and transparency in the restaurant industry by ensuring that service charges are used appropriately and that restaurant workers are fairly compensated for their work.

Current Status of Bill HR 8401

Bill HR 8401 is currently in the status of Bill Introduced since May 15, 2024. Bill HR 8401 was introduced during Congress 118 and was introduced to the House on May 15, 2024. Bill HR 8401's most recent activity was Referred to the Subcommittee on Social Security. as of December 17, 2024

Bipartisan Support of Bill HR 8401

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 8401

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 8401

To amend the Internal Revenue Code of 1986 to allow a credit for a portion of employer social security taxes paid with respect to service charges paid by the employer to an employee in the form of wages, and for other purposes.