ROC United, a labor group that advocates on behalf of restaurant workers, was less sanguine about the development, with executive director Sekou Siby saying that they’re “distraught” that restaurant workers were left out of the new law. The hospitality industry is “fundamentally different than these other industries,” the group said. The New York Hospitality Alliance, which has long lobbied against the elimination of the tip credit on behalf of owners and operators, said in a release it was “very pleased” with Cuomo’s decision. Industry groups responded predictably to the development.
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Department of Labor has carried out more wage violation actions against the food service industry than any other industry for the past four years - often triple, quadruple, or quintuple the rate of agriculture or hair, nail, and skin care services.
It did note, however, that in certain industries, tips are common enough that compensation exceeds the minimum wage, therefore justifying “some offset.”Ĭuomo said that the order was designed to target industries “with the highest risk of wage theft,” citing a three-year assessment. The state Department of Labor made scant reference to the hospitality industry in its report on the meetings, on which Cuomo’s decision was based.
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Many operators and owners believe ending the tip credit would cost jobs, while labor advocates argued that a single wage has worked well in California and elsewhere, where waiters are guaranteed the full minimum before tips. It lasted over eight hours and included testimony from over 155 individuals on both sides of the issue. The state conducted hearings on the issue throughout 2018, the largest and longest of which was dedicated to the hospitality industry. They earn a reduced base wage, with the expectation that tips will bring them up to the legal minimum wage. When Governor Cuomo first announced his decision to study eliminating the tipped minimum wage in 2017, his office was quick to mention the “low” wages of restaurant staffers, many of whom rely on gratuities to make up the bulk of their income. The move to overlook restaurant workers is striking. Those changes will fully take effect by the year’s end. Cuomo only increased the base pay for car wash workers, salon workers, and workers of other “miscellaneous” industries, bringing them up to the full minimum, which works out to $15 per hour in New York City. Waiters, bartenders, and bussers - many of whom rank among the lowest paid individuals in New York - will not be getting a raise, as it turns out.
When Andrew Cuomo finally announced that he’d be eliminating the tipped minimum wage for scores of jobs, a decision the hospitality industry had been awaiting for well over a year, the governor did something unexpected: He declined to make any reference to restaurants or bars - an odd omission given that those establishments employ the largest group of tipped workers in the state, nearing 250,000 individuals.
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