October 23, 2014

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New York’s New Miscellaneous Wage Order Tip Credit Provision to Impact Businesses Such As Car Washes and Salons

As discussed in greater detail here, the New York State Department of Labor’s revised Wage Orders, which were published in the administrative record on October 9, 2013 and set to become final by the time New York’s December 31 minimum wage hike becomes effective, implement a number of changes to the pay requirements and credits available under state law.

Amongst these are provisions modifying the available tip credits.  While the minimum wage that must be paid to most Hospitality industry employees will remain at its current level of $5.00/hour (with only the overtime rate increasing due to the increased tip credit), employers who avail themselves of the tip credit provision under the Miscellaneous Wage Order—such as car washes and salons to use two common industry examples— must recognize that the maximum tip credit has been set at $1.95/hour, resulting in a revised minimum wage for tipped employees of at least $6.05, an increase of fifty-five cents above the current level.

Affected businesses regulated by the Miscellaneous Wage Order with employees for whom a tip allowance is taken must prepare for this scheduled increase in labor costs.

Jackson Lewis P.C. © 2014

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About this Author

Noel Tripp employment law Jackson Lewis law firm
Associate

Noel P. Tripp is an Associate in the Long Island office of Jackson Lewis P.C., one of the largest law firms in the United States devoted exclusively to representing management in labor and employment matters. Since joining Jackson Lewis LLP as a summer associate in May 2005, he has practiced exclusively in employment law and has been involved in matters pending before federal and state courts and administrative agencies covering the gamut of employment-related matters from discrimination and workplace harassment to wage/hour disputes and affirmative-action compliance. His principal focus...

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