Pizza Hut’s $10 Large Pizza
Breaking down the fine print of this March Madness commercial.
Why are these airport vendors slyly charging consumers for “employee benefits”?
After recently surviving the hours-long lines at New York’s JFK International airport, a TINA.org staffer decided to celebrate with some Jamba Juice. But before she could take the first sip of her Strawberry Whirl smoothie, she discovered an “Employee Benefits & Retention Fee” on her receipt that was not disclosed prior to ordering.
The receipt explains the hidden fee at the bottom, stating that a “3% Employee Benefits and Retention surcharge” is added to all orders, and while it supposedly benefits the staff, it is not a tip.
And apparently, the junk fee is not exclusive to Jamba Juice.
On Reddit and Facebook, consumers have reported that multiple different businesses at New Jersey and New York airports charge this same surprise fee.
So what’s the deal?
In December 2024, the Port Authority of New York and New Jersey announced that it was raising the minimum wage for employees at JFK, LaGuardia and Newark airports to reach $25/hour by 2032.
“To offset the added cost to businesses,” the Port Authority said, the policy allows vendors to increase their price markups (i.e., the difference between how much they charge at the airport versus outside the airport for the same product) from 10% to 15%. They could also charge an “employee benefits and retention surcharge” not to exceed 3% of a customer’s pre-tax bill.
It’s no secret that things cost more at the airport but, as evidenced by the consumer complaints above, a mandatory hidden fee for “employee benefits” came as a surprise to many.
Interestingly, the Port Authority does not specify how the fee should be disclosed to consumers. And the agency did not respond to a request for comment asking if it requires vendors to clearly disclose the fee to consumers before obtaining payment so they aren’t surprised when they see it on their receipt.
But it’s worth noting that New York City (the home of JFK and LaGuardia airports) recently issued an executive order aimed at fighting junk fees, which it defines as pricing that hides “mandatory extra charges until the end of checkout.”
We also reached out to Jamba Juice and the other vendors named in the consumer complaints above. None responded.
The bottom line
Consumers need to watch out for these types of junk fees as there seem to be similar ones for “employee benefits” at other airports and restaurants in general. If you’re worried about hidden fees being added to your total, consider asking your cashier or server about additional charges before ordering.
Find more of our coverage on junk fees.
Our Ad Alerts are not just about false and deceptive marketing issues, but may also be about ads that, although not necessarily deceptive, should be viewed with caution. Ad Alerts can also be about single issues and may not include a comprehensive list of all marketing issues relating to the brand discussed.
Breaking down the fine print of this March Madness commercial.
Advertised $19.99 price deserves an official review.
Advertised “best deal ever” comes with some caveats.