Employment Law

Employment Update on New York State Restaurant Tip Credit

Along with the changes to the minimum wage that took effect on December 31, 2016, New York is returning to separate tip credit allowances for food service workers and service employees. In the restaurant business, food service workers typically consist of waitstaff and wait assistants or bussers, whereas service employees typically consist of delivery workers.

In New York City restaurants with 11 or more employees, the food service worker minimum wage remains at $7.50 but the service employee minimum wage increases to $9.15. However, with New York City restaurants under 11 employees and restaurants outside the five boroughs, the rates may vary.

It is critical for businesses to stay current with the law as regards wages and tip credits. At Paschalidis Law Offices, we can assist you by ensuring compliance with the applicable laws.