By the end of 2020, 70,000 of New York’s workers who rely on tips to supplement their wages will receive the full minimum wage from their employers on top of the tips they receive from customers for the first time.
Under current New York law, employers of workers who earn tips for their services pay far less than minimum wage in New York City. Employers use workers’ tips, known as a “tip credit,” to supplement the difference between this sub-minimum wage and the state or city minimum wage. On June 30, 2020, the tip credit will be cut in half, and on December 31, 2020, it will be eliminated altogether.
The Department of Labor’s Miscellaneous Industries and Occupations Wage Order, announced by Governor Cuomo on January 1, 2020, affects workers throughout the hospitality and service industries, including nail salon employees, car wash attendants, hairdressers, barbers, tour guides, dog groomers, door-persons, and others.