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Some LA area eateries adding 3% surcharge to cover insurance costs

The restaurant owners say the surcharge isn't meant to make a political point, but is simply a way to cover the cost of healthcare for employees while negotiating razor-thin profit margins.

October 7, 2014

Several LA-area restaurants are adding a 3 percent surcharge to diners' bills to cover the cost of employees medical insurance, according to the Los Angeles Times.

Under the Affordable Care Act, businesses with 50 or more employees will be required to provide coverage after 2016.

The restaurant owners say the surcharge isn't meant to make a political point, but is simply a way to cover the cost of healthcare for employees while negotiating razor-thin profit margins.

The LA restaurants are following the lead of many restaurants in the San Francisco area, where health insurance coverage has been mandated since 2008.

According to the report, some diners have questioned the surcharge and even asked to have it removed from their bill.