CA Diners Receive Bill For Meal, Charged ‘Extra’ Fee After Wage Increase

After enjoying a meal at Sammy’s Woodfired Pizza in San Diego, California, Julian Gallardo checked out his bill. He was outraged when he spotted a new charge on his receipt for something “extra.”

Julian Gallardo had a lovely meal at Sammy’s Woodfired Pizza in San Diego. However, he was quite taken aback when he noticed an extra charge of $3 on his bill. According to FOX 5, this additional fee was to offset a recent increase in California’s minimum wage.

He loved the food and service but felt blindsided by this unexpected charge. “I had no idea I’d be paying extra,” Julian said, clearly frustrated. “They should have mentioned this charge upfront or put up a sign explaining it.” That little surprise put a damper on his evening.

This extra charge, known as the “California Mandate,” helps restaurants cope with the increased labor costs due to the recent wage hike. If you’re dining out in California, it’s a good idea to keep an eye out for such charges on your bill, especially as the minimum wage continues to rise.

The California Department of Industrial Relations has stated that the minimum wage is set to go up incrementally every year until it reaches $15 per hour in 2023. While this policy was initially well-received, attitudes are changing as the additional costs are increasingly passed on to customers.

David Cohn, the CEO of the Cohn Restaurant Group, which owns Sammy’s, mentioned, “The surcharge works better than raising prices and helps offset additional operating expenses. This is happening across the country, not just here.”

There was significant opposition to the wage increase from various activist groups and worker unions. Jessica Yañez, representing the Restaurant Opportunities Center United, emphasized the need to raise the baseline minimum wage. “We’re trying to eliminate the two-tiered wage system,” she said. “It’s not just about money; it’s about the challenging work conditions that come with earning tips, including gender discrimination and harassment. Employees deserve the stability that a predictable income provides.”

As diners get used to this surcharge, it may become a standard addition at many restaurants. This trend might spread beyond California as other states consider similar minimum wage increases. California’s approach could either become a widely adopted practice or serve as a warning to others contemplating similar measures.