NY Tipped Workers Earn Wage Increase
A Tip is Just a Tip: NY Decides Tipped Workers Weren’t Earning Fair Share
The hot topic of discussion on hospitality workers has finally come to a head. This industry has long been the subject of protests and unique caveats regarding salary and gratuity for tipped employees such as waiters and waitresses. Now, the revolution can cease, at least for a little while. In an effort to close the gap between the wealthy and the poor in the state of New York, Governor Cuomo has recently announced that a wage increase is in order – these tipped workers will be required to have a minimum base wage of $7.50 per hour.
Higher Base Pay = Happier Employees
Currently set at just $5.00 per hour, full time tipped workers can start to rejoice at a $100 weekly increase in their gross base pay. The new rate of $7.50 per hour is still lower than the overall minimum wage in the state of New York since employees are expected to earn much more than that with their gratuity stacked on top. In this field, employees have become accustomed to fluctuating pay based on the clientele during each shift. Without the guarantee of a livable salary, it can be quite difficult to budget and plan accordingly, despite the potential for more income.
What Does This Mean For Business Owners?
This new ruling will have a direct impact on the overhead of the less happy folks in the bunch – businesses in the hospitality industry that rely on customers to subsidize their employees’ pay. However, the increase will go into effect on 12/31 at the end of the year to give businesses ample time to prepare accordingly. Many restaurant owners have already weighed in claiming that they may have to cut their staff or cut employees’ hours. While it is a game changer in the industry, the law can also lead to lay-offs, which will inadvertently affect some of the staff negatively instead of positively, as intended.
What You Need To Know:
- All tipped employees will receive a wage increase to $7.50 per hour
- Increase goes into effect 12/31/15
- Plan accordingly
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