Bill 81 2010

An Act to eliminate automatic tips in restaurants

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Interpretation

   1.  For the purposes of this Act,

"automatic service charge" means a designated amount that is added to a bill in an eating establishment for the service provided.

Automatic service charges at restaurants prohibited

   2.  (1)  No person who owns or operates an eating establishment shall charge any customer an automatic service charge, regardless of whether notice of the service charge is provided in advance.

Exception

   (2)  This Act does not apply to private functions or banquets.

Commencement

   3.  This Act comes into force on the day it receives Royal Assent.

Short title

   4.  The short title of this Act is the Elimination of Automatic Tips Act, 2010.

EXPLANATORY NOTE

The Bill prohibits restaurant owners and operators from charging automatic service charges in restaurants, except with respect to private functions or banquets.