New York State Does Away With Sub Minimum Wage For Tip Reliant Occupations
The New York State Department of Labor is issuing an order to bring wages of employees who receive tips as part of their job in line with those who do not get tips. According to Governor Andrew M. Cuomo’s office, the so-called tip credit currently applies to over 70,000 employees including nail salon workers, hairdressers, valet parking attendants, door-persons, tow truck drivers, dog groomers and tour guides.
Governor Cuomo states, "it's clear the tip system in many situations is needlessly complicated, allowing unscrupulous businesses to flout our nation-leading minimum wage laws and robbing workers of the paycheck they earned. That ends now. Today, I am directing the labor department to put an end to the tip credit in the industries with the highest risk of wage theft to help restore fairness for workers, many of whom are critical to the service industries that keep our economy moving forward."
The elimination of the tip wage for miscellaneous industries will be phased in over a one-year period.