What would getting rid of the tip credit mean for the restaurant industry in New York?
That’s a debate that is growing in New York after Gov. Andrew Cuomo in his State of the State address in January announced the state Labor Department will be holding hearings to look into the possibility of eliminating the tip credit in New York.
“These hearings are going to take place across the state,” said Melissa Fleischut, president and CEO of the state Restaurant Association.
“We’re hearing a lot of concern back from the employers and the employees that they think this could be very detrimental to the restaurant industry.”
Tip credits allow restaurants to pay tipped employees less than the minimum wage as long as their tips make up the difference. Depending where in New York a restaurant is located, the tipped wages for employees is $7.50 and hour for most of New York and $8 an hour in New York City.