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Tipped Employees in New York

Filed under Office & HR.

Employers in New York must conform with these state rules regarding the treatment of tips received by employees.

Effective December 31, 2013, the minimum wage and tip credit for tipped workers is as follows:

  • Food service workers: $5.00 per hour, and the tip credit may not exceed $3.00 per hour provided that the total of tips received plus wages equals or exceeds $8.00 per hour
  • Service industry employees: $5.65 per hour; credit for tips may not exceed $2.35 per hour provided that the total of tips received plus wages equals or exceeds $8.00 per hour
  • Resort hotel service employees: $4.90 per hour; credit for tips may not exceed $3.10 per hour if the weekly average of tips is at least $4.50 per hour

When an employer is taking a tip credit towards the minimum hourly rate, the overtime pay rate is the employee's regular rate of pay before subtracting the tip credit, multiplied by one and a half, minus the tip credit. Employers are not permitted to subtract the tip credit first.

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