Proposed NY bill seeking to raise minimum wage of service workers and changing tipping regulations
New York lawmakers have proposed a new bill that would increase the minimum wage for service workers as well as set regulations on tips for restaurant workers. The current minimum wage for service workers who make tips is 10.65/hour, and their hourly pay combined with tips they earn are expected to be above the New York City minimum wage of 16/hour. If their overall pay is less than the minimum wage, companies are required to pay workers the difference. The bill proposes that the minimum wage for service workers increases over the course of a few years, and will eventually reach the New York City minimum wage. Tipping will continue, but the lawmakers in support of the bill state that workers often get short-tipped, so the change in minimum wage would provide service workers with greater stability. Restaurant owners have expressed strong opposition to the bill, claiming that the increase in minimum wage and the phasing out of the tipping system will significantly increase restaurant costs. These costs would most likely be passed on to consumers, and the spikes in prices could negatively affect the state’s economy.
See "Proposed NY bill seeking to raise minimum wage of service workers and changing tipping regulations", ABC 7 NY, February 2, 2024