Minimum Cash Wage for Tipped Workers To Increase

In October 1, 2015
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New York’s Commissioner of Labor has accepted the New York State Department of Labor Wage Board’s recommendation that the minimum cash wage for tipped workers be increased by 50 percent from $5.00 to $7.50 per hour. The increase is scheduled to take effect on December 31, 2015.

Like most other states, New York maintains separate minimum wage rates for tipped and non-tipped workers in recognition of the significant compensation restaurant workers and other hospitality industry employees often receive through customer tips. Employers of tipped workers are permitted to pay a cash wage below the state minimum for other industries by taking a tip allowance as a credit against the state minimum wage.

Beginning in 2016, the minimum cash wage that employers are required to pay directly to workers (regardless of tips) will be increased by $2.50 to $7.50 per hour. As a result, the maximum tip allowance that employers are permitted to take as a credit against the minimum wage of their tipped workers will be correspondingly decreased by $2.50 from $3.75 per hour to $1.25 per hour.

The move to increase the minimum cash wage for tipped workers is just one component of a broader effort over the last year by Governor Cuomo and the Department of Labor to mandate higher wages and more tightly regulate employers of low-income workers, particularly in the food service and other hospitality industries.

For additional information and the tipped worker order please refer to: http://www.labor.state.ny.us/workerprotection/laborstandards/workprot/minwage.shtm.

 

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