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New York Eliminates Tipped Employee Minimum Wage in Miscellaneous Industries

On December 31, 2019, New York amended its wage order for miscellaneous industries to eliminate the subminimum wage for tipped employees.

The minimum wage rate for tipped employees in miscellaneous industries will increase in two stages.

  • On June 30, 2020, the new rate will increase to cover 50% of the difference between the miscellaneous tipped wage and the minimum wage.
  • On Dec. 31, 2020, the miscellaneous tipped wage will increase again to equal to the applicable minimum wage.

The miscellaneous industry wage order applies to employees who are not covered by another minimum wage order or work for a nonprofit (if the nonprofit employer has elected to be exempt under the state’s wage order for non-profit institutions). Tipped employees covered by the miscellaneous industry wage order include nail and hair salon workers, aestheticians, car wash workers, valets, doormen and doorwomen, dog groomers, tour guides and tow truck drivers.

Please note: The current tipped employee minimum wage rates still apply for the restaurant and hospitality industries.

Next Steps

Employers with tipped employees (outside of the hospitality industry) must take note of this order and be prepared to comply. This means that employers in the impacted industries must increase the wages of tipped employees as of June 30 and again on December 31, at which time tipped employees must be paid the regular minimum wage. Employers should take the necessary steps to change their payroll accordingly.

 

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