Tips & Tipped Employees in NY
The laws regarding tips and tipped employees in New York are more stringent than the federal laws, and it's crucial for employers to comply with them in order to avoid legal issues and ensure that their employees are being treated fairly.
The New York State Department of Labor (NYSDOL) governs the treatment of tips and tipped employees in the state. Under the NYSDOL, employers are required to pay their tipped employees the full minimum wage, regardless of how much the employee earns in tips. The current minimum wage in New York is $15.00/hr for New York City as well as Nassau, Suffolk, and Westchester Counties, and $14.20/hr for the rest of the state. This means that, regardless of how much an employee earns in tips, the employer must pay them at least the full minimum wage. Employers are who pay a lower cash wage to tipped employees must make up the difference if the employee does not earn enough in tips to reach the minimum wage. (https://www.labor.ny.gov/workerprotection/laborstandards/workprot/minwage.shtm)
It's also important to note that, under New York state law, tips belong to the employees and cannot be shared with the employer or manager. Employers also cannot require employees to share their tips with non-tipped employees. (https://www.labor.ny.gov/workerprotection/laborstandards/workprot/minwage.shtm)
In addition, New York state law provides additional protections for tipped workers, such as:
Tipped employees must be informed of the wage and tip credit provisions by the employer in writing
Tipped employees must be allowed to retain all tips, except for valid tip pooling or sharing arrangements among employees who customarily and regularly receive tips
Employers are prohibited from retaliating against tipped employees for asserting their rights
Employers are required to keep accurate records of tipped employee’s hours, tips, and wages (https://www.labor.ny.gov/workerprotection/laborstandards/workprot/WageTheftPreventionActSummary.shtm)
It's crucial for employers to understand and comply with the laws regarding tips and tipped employees in New York in order to avoid legal issues and ensure that their employees are being treated fairly. If you are an employee who feels you have been improperly paid or an employer seeking to review/gain compliance with labor and employment regulations in New York, Contact us for a free consultation.
Please note that the state minimum wage rates, and laws are subject to change. This blog post was written based on the knowledge cut-off date, and we recommend you check the current laws and regulations or reach out to us directly before making any legal decisions.
