New York Tipped Minimum Wage to Increase on December 31, 2015

Today, the New York State Department of Labor’s Acting Commissioner, Mario Musolino, announced that New York State will raise the minimum wage for all tipped workers in the hospitality industry to $7.50, effective December 31, 2015.  The amount could be $8.50 in New York City should the New York State legislature enact a higher minimum wage rate for New York City hospitality industry employees.   Currently, tipped food service workers must be paid an hourly wage of at least $5.00 and tipped service employees must receive at least $5.65 per hour.  In raising the tipped hourly minimum wage to $7.50, the Department of Labor has also determined to eliminate the different rates currently paid to different categories of tipped employees in the hospitality industry.

In addition, the New York State Department of Labor accepted the governor-appointed Wage Board’s recommendation to consider eliminating the tip credit altogether, which would require hospitality industry employers to pay employees the full hourly minimum wage, which in New York is currently $8.75.   Several states have already eliminated the tip credit, and New York with its 50% increase in the tipped minimum wage may be on its way to doing the same.

You can access the Acting Commissioner’s Order by clicking here:  Order of Department of Labor.

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