This week Governor Cuomo announced his order phasing out the well-known tip credit and requiring employers to pay at least minimum wage in certain businesses including but not limited to hairdressers, nail salon employees, valet parking attendants, tow truck drivers, and tour guides. What this means is that employers must pay minimum wage to their employees – without the benefit of the tip credit – by the end of the year. The tip credit phases out throughout 2020. Currently, these employers can pay tipped employees below the State minimum wage if their employees earn enough tips, on average, to make up the difference.
This change is expected to affect tens of thousands of employees across New York. But the order does not (yet) affect restaurant workers, an industry that lobbied hard against this change.
Minimum wage increased across New York on December 31, 2019. For all employees in New York City, as well as Nassau, Suffolk, and Westchester County employees, it increased to $15 per hour. For the rest of New York State, the minimum wage increased to $12.50 per hour.
For questions on how to comply with New York – and federal – wage and hour laws, don’t hesitate to contact the attorneys at The Coppola Firm.
