Hospitality Industry Wage Order - Minimum Wage Increasing Effective December 31, 2017
Minimum wages for hospitality industry employees are in the middle of a substantial statewide increase.
Minimum Wage In New York City, the minimum wage for hospitality employees (excluding fast food), will be increased to $13 at end of 2017 and $15 at end of 2018 for employers with more than 10 employees. NYC fast food employees will increase to $13.50 at end of 2017, $15 at end of 2018.
Tip Credits For NYC Food Service Workers. A food service worker in NYC shall receive a wage of at least the hourly Cash Wage rate listed below, and credit for tips shall not exceed the hourly Credit rate listed below, provided that the total of tips received plus the wages equals or exceeds the hourly Total rate listed below when working in New York City for
(i) Large Employers of eleven or more employees:
- $7.50 Cash Wage, $3.50 Credit, $11.00 Total on and after December 31, 2016;
- $8.65 Cash Wage, $4.35 Credit, $13.00 Total on and after December 31, 2017;
- $10.00 Cash Wage, $5.00 Credit, $15.00 Total on and after December 31, 2018;
(ii) Small Employers of ten or fewer employees
- $7.50 Cash Wage, $3.00 Credit, $10.50 Total on and after December 31, 2016;
- $8.00 Cash Wage, $4.00 Credit, $12.00 Total on and after December 31, 2017;
- $9.00 Cash Wage, $4.50 Credit, $13.50 Total on and after December 31, 2018;
- $10.00 Cash Wage, $5.00 Credit, $15.00 Total on and after December 31, 2019;
Overtime, spread of hour rules, uniforms and meal/lodging credits have also changed. In addition, there are new requirements regarding employer records and other important changes.
For a full listing of changes, see the full Hospitality Industry Wage Order published by the New York State Department of Labor: https://www.labor.ny.gov/formsdocs/wp/CR146.pdf
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The DD&M Hospitality Matters Law Blog examines topics and developments of interest to food and beverage groups and other restaurateurs, hotel owners and developers, and private equity and other investors active in the hospitality space, and others with an interest in recent legal and other developments concerning the hospitality space. This blog focuses on New York, but also includes developments from other jurisdictions.
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