Higher Pay for Workers Who Collect Tips: State Wage Board

The New York State Wage Board has recommended five changes to the way workers whose income is partly or mostly from tips.

The minimum wage for people who are tipped has not risen since 2011, state officials said.

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1. A motion to recommend uniform tip amounts and criteria for all tipped workers in the hospitality industry, so that the same rates apply to food service workers, service employees and service employees in resort hotels.
2. A motion to recommend an increase in the tipped cash wage amounts from their current rates of $4.90, $5.00 and $5.65, which have not increased since 2011, to $7.50 per hour, effective December 31, 2015.
3. A motion to recommend that, if the legislature enacts a separate minimum wage rate for New York City, then the cash wage for such workers be increased by one dollar, effective on the date that such separate minimum wage rate for New York City takes effect.
4. A motion to recommend a review of whether the system of cash wages and tip credits should be eliminated.
5. A motion to recommend that, effective December 31, 2015, the tip allowance be increased by $1.00 per hour when the weekly average of cash wages and tips equals or exceeds the applicable hourly minimum wage rate by 150% in New York City or 120% in the rest of the state.

The Wage Board is submitting a report to acting Labor Commissioner Mario J. Musolino.