In California, is it legal to apply auto gratuity to a bill? If the service was terrible is it legal to pay less than the gratuity amount?
Answer
It isn't illegal, but it isn't specifically legal either. It is like a contract in that you aren't legally bound by the terms that you didn't agree too.
Many restaurants automatically add a gratuity to bills for large groups and you will see disclosures on the menu. By ordering after reading the menu, this an implied acceptance of the terms of the contract formed when you order the food and agree to pay the price.
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