What's happening
This bill allows counties in New York to opt out of minimum wage increases for tipped workers that eliminate the tip credit.
Why it matters
Gives local governments more say over wage policy. By allowing counties to opt out of eliminating the tip credit, the bill empowers local officials to make decisions based on regional economic conditions, rather than enforcing a uniform state mandate.
Potentially preserves current pay structures for tipped workers. If counties opt out, tipped workers (like restaurant servers) could continue to be paid a lower cash wage supplemented by tips, instead of receiving the full minimum wage directly from employers.
Impacts businesses and workers differently across the state. This could lead to significant disparities in pay and labor costs between counties, affecting worker earnings, business expenses, and potentially where restaurants and similar businesses choose to operate.
May influence debates on worker protections and local autonomy. The bill highlights ongoing tensions between increasing guaranteed wages for low-wage workers and concerns from businesses about increased labor costs, while also raising questions about the appropriate balance between state and local control.
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Who cares
Headline styles
Let Counties Block Tip Law
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Counties Keep Tip Credit
In Assembly Committee · Labor · Sponsor Carrie Woerner
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3815
2019-2020 Regular Sessions
IN SENATE
February 15, 2019
Introduced by Sens. JORDAN, LITTLE, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to authorizing counties to opt out of any wage increase that eliminates the credit for tips
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 2 and 4 of section 652 of the labor law, subdivision 2 as amended by chapter 38 of the laws of 1990 and subdivision 4 as amended by section 2 of part K of chapter 54 of the laws of 2016, are amended to read as follows:
2. Existing wage orders. The minimum wage orders in effect on the effective date of this act shall remain in full force and effect, except as modified in accordance with the provisions of this article.
Such minimum wage orders shall be modified by the commissioner to increase all monetary amounts specified therein in the same proportion as the increase in the hourly minimum wage as provided in subdivision one of this section, including the amounts specified in such minimum wage orders as allowances for gratuities, and when furnished by the employer to its employees, for meals, lodging, apparel and other such items, services and facilities. All amounts so modified shall be rounded off to the nearest five cents. The modified orders shall be promulgated by the commissioner without a public hearing, and without reference to a wage board, and shall become effective on the effective date of such increases in the minimum wage except as otherwise provided in this subdivision, notwithstanding any other provision of this article; provided, however, a county may opt out of any increase in the hourly cash wage for food service workers and service employees that eliminates the credit for tips.
4. Notwithstanding subdivisions one and two of this section, the wage for an employee who is a food service worker receiving tips shall be a cash wage of at least two-thirds of the minimum wage rates set forth in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07823-01-9
S. 3815 2
subdivision one of this section, rounded to the nearest five cents or seven dollars and fifty cents, whichever is higher, provided that the tips of such an employee, when added to such cash wage, are equal to or exceed the minimum wage in effect pursuant to subdivision one of this section and provided further that no other cash wage is established pursuant to section six hundred fifty-three of this article; and provided, further, that a county may opt out of any increase in such cash wage for food service workers and service employees that eliminates such credit for tips.
§ 2. Subdivision 2 of section 653 of the labor law, as added by chapter 14 of the laws of 2000, is amended to read as follows:
(2) The commissioner shall, within six months after enactment of any change in the statutory minimum wage set forth in subdivision one of section six hundred fifty-two of this article, appoint a wage board to inquire and report and recommend any changes to wage orders governing wages payable to food service workers. Such wage board shall be established consistent with the provisions of subdivision one of section six hundred fifty-five of this article, except the representatives of the employees shall be selected upon the nomination of the state American Federation of Labor/Congress of Industrial Organizations; and provided, further, that the representatives of the employers shall be selected upon the nomination of the New York State Business Council. Any wage order authorizing a lesser wage than the previously and statutorily mandated minimum wage for such employees shall be reviewed by the wage board to ascertain at what level such wage order is sufficient to provide adequate maintenance and to protect the health and livelihood of employees subject to such a wage order after a statutory increase in the mandated minimum wage. Notwithstanding section six hundred fifty-five of this article, counties may opt out of any wage order under this subdivision authorizing an increase in the cash wage for such employees that eliminates the credit for tips.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to author- izing counties to opt out of any wage increase that eliminates the cred- it for tips
Purpose of the bill
To authorize counties to opt out of any wage increase that eliminates the credit for tips
Summary of provisions
Section 1: Amends labor law to provide that a county may opt out of any increase in the hourly cash wage for food service workers and service employees that eliminates the credit for tips
Section 2: Provides that, notwithstanding section six hundred fifty-five of this article, counties may opt out of any wage order under subdivi- sion 2 of section 653 of labor law authorizing an increase in the cash wage for such employees that eliminates the credit for tips
Section 3: Establishes the effective date
Justification
The proposal to remove the tipped wage credit has been met with strong opposition from restaurant owners, servers and industry leaders in upstate New York. This proposal is a "one-size-fits-all" policy that does not work for all of New York. The problems of servers and restau- rant workers in places like Manhattan and Queens are not the same as the problems of upstate workers and servers. This legislation will give the counties the option to opt out of the elimination of the tipped wage credit. By taking a regional approach, we can avoid legislating an issue in search of a problem in one region, and also allow other regions where the problem does exist, the opportunity to address it. In Saratoga Springs, we have heard from many industry workers who agree that they make far more than the minimum wage with the tipped wage credit. Sarato- ga Springs is an affluent tourist town that attracts millions of visi- tors every year. The servers in Saratoga are aware of the benefit of working in a tourist town and have chosen a career in the hospitality industry because it is so profitable. The same concept applies to small tourist towns like Lake George and Cooperstown as well. However, it is fair to argue that an issue such as wage theft may be t ied to the culture of tipping in New York City. This is why a regional approach is more effective than an overarching, state-wide policy.
Prior legislative history
S8297 of 2018
Fiscal implications
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.