Here are the Changes to the New York Tipped Wage Rate

Jan 13, 2020

new york tipped wage rateOn Dec. 31, 2019, New York amended its wage order for miscellaneous industries to eliminate the minimum wage rate for tipped employees. Please note that the current New York tipped wage rate still applies to the restaurant and hospitality industries.

The miscellaneous tipped employee minimum wage rate will increase in two stages:

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

The state estimates that this change will impact more than 70,000 tipped employees. Affected employees will include nail salon workers, hairdressers, aestheticians, car wash workers, valet parking attendants, door-persons, tow truck drivers, dog groomers and tour guides.

The Miscellaneous Wage Order states:

  • New York’s miscellaneous industry wage order applies to employees who are not covered by another minimum wage order or work for a nonprofit.
  • Employers can pay the high tip rate to employees who receive tips that are equal to or greater than the high tip rate.
  • Employers can pay the low tip rate to employees who receive tips that are between the low and high tip rates.
  • Employers must pay the full minimum wage rate to employees who receive tips lower than the low tip rate.

New York Tipped Wage Rate Table

Minimum Wage for Tipped Employees in Miscellaneous Industries
New York City Long Island & Westchester Rest of the State
Min. Wage Low Tips High Tips Min. Wage Low Tips High Tips Min. Wage Low Tips High Tips
Dec. 31, 2019 $15 $12.75 $11.35 $13 $11.05 $9.80 $11.80 $10.05 $9.80
June 30, 2020 $15 $13.85 $13.15 $13 $12 $11.40 $11.80 $10.90 $10.35
Dec. 31, 2020 $15 $15 $15 $14 $14 $14 $12.50 $12.50 $12.50

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