Can Colorado restaurants still charge a service charge?
Quick answer
Yes, but since January 1, 2026 any Colorado price you show must include every mandatory fee (C.R.S. 6-1-737, HB25-1090). Restaurants and bars may instead show the service charge percentage or amount, and who gets it, next to the price. Taxes and shipping can be added. Fines reach $20,000 per violation, counted per customer (C.R.S. 6-1-112).
Not legal advice.
Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Law | C.R.S. 6-1-737, added by HB25-1090 (Session Laws ch. 94) | Official source |
| Effective | January 1, 2026 | Official source |
| Rule | Show the total price including all mandatory fees as one number; taxes and actual shipping may be added | Official source |
| Restaurants | May show the service charge percentage/amount and how it is distributed with the price, in every offer, display or ad | Official source |
| Penalty | Up to $20,000 per violation, per consumer or transaction; up to $50,000 against an elderly person (C.R.S. 6-1-112) | Official source |
What to do now
- Check every menu, website, app and ad for prices that leave out mandatory fees.
- Restaurants: next to prices, state the service charge and how it is distributed.
- Train staff on a short script for questions about the charge.
- Keep a log of what changed and when.
Want it done in an afternoon? The Colorado service charge & all-in price kit turns these steps into fill-in templates, a checklist and a tracker, with the official sources quoted. One-time payment, instant download.
FAQ
What is the Colorado junk fee law?
HB25-1090, now C.R.S. 6-1-737. It requires one total price that includes all mandatory fees whenever you offer, display or advertise a price, starting January 1, 2026.
Is the fine higher if the customer is older?
Yes. Up to $50,000 per violation against an elderly person (60 or older under C.R.S. 6-1-102(4.4)), per C.R.S. 6-1-112(1)(c).
When did the Colorado all-in price law take effect?
January 1, 2026.
Can Colorado restaurants still add a service charge?
Yes, if every offer, display or ad shows the charge's percentage or amount and an accurate description of how it is distributed, together with the price.
Can taxes be added later?
Yes. Taxes and actual shipping costs can be added later.
What are the penalties?
A violation is a deceptive trade practice (C.R.S. 6-1-737(5)(a)). The Attorney General or a district attorney can seek up to $20,000 per violation, counted for each consumer or transaction (C.R.S. 6-1-112(1)(a)), and up to $50,000 per violation against an elderly person.
Is this legal advice?
No. General information only.
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