New York State Minimum Wage Increase for Tip Earners

By Brian Gordon

Following inEffective December 31, 2015 the minimum wage will be increased for all tip earning employees in the hospitality industry in New York State to $7.50.

Currently, tipped employees fall into three categories: food service workers, service employees and service employees in resort hotels. Each of these categories currently has a different minimum wage. Resort hotel workers receive $4.90. Food service workers receive $5.00 and other service workers receive $5.65. This variation is based on the amount of expected tips. All tipped workers will now have a minimum wage set at $7.50.

Acting Commissioner of the Department of Labor Mario J. Musolino, on February 24, 2015 approved these recommendations of the Hospitality Wage Board.

Tipped workers have not had an increase since 2011while the general minimum wage for salaried employees has gone up twice since 2011 and is also going up on December 31, 2015 from $8.75 to $9.00. The difference again is due to tips that are expected to be received.

Commissioner Musolino pointed out that it has been too long since these hospitality workers have had a raise. This order also completes the goal of establishing a single rate for all tipped workers that was postponed since 2009.

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