Gov. Newsom signs law allowing California restaurants to keep surcharges

After an 11th-hour intervention by Gov. Gavin Newsom, California restaurants will be allowed to continue adding surcharges onto patrons’ bills to help cover the skyrocketing cost of doing business in the Golden State.

In its original form, Senate Bill 478, authored in June by Sen. Bill Dodd (D-Napa) and Sen. Nancy Skinner (D-Berkeley), would have prohibited purported junk fees from a host of businesses including bars, delivery apps, travel, ticket sales, hotels and restaurants.

The law intended to ban the “advertising...