What is the current minimum wage in New York? What is the current tip credit allowed in New York?

 

What is the current minimum wage in New York for 2017? What is the current tip credit allowed in New York? These questions often get asked at the beginning of each year.  Here are the answers…

 

The following is the minimum wage for employees in New York who are not tipped employees:

For NYC employers with 11 or more employees: $11.00 per hour

For NYC employers with 10 or fewer employees: $10.50 per hour

For Nassau, Suffolk and Westchester County employers: $10.00 per hour

For all other employers: $9.70 per hour

 

 

Employers are legally permitted to pay “service employees” and “food service workers” below the minimum wage set forth above and claim a “tip credit” for the tips those employees are receiving. This is rate is sometimes referred to as the “tipped minimum wage.” The difference between the minimum wage listed above and what “service employees” and “food service workers” are paid is called the “tip credit”

The hourly rate for tipped employees depends if the they qualify as a “service employees” or “food service workers.” A “service employee” is any employee, other than a food service worker who regularly receives tips. A “food service worker” is an employee who is primarily engaged in serving food or beverages to guests, patrons or customers in the hospitality industry, including waiters, bartenders, captains and bussing personnel; and who regularly receive tips from those guests, patrons or customers. Delivery workers do not qualify as food service workers.

 

 

The following is the tipped minimum wage for “service employees”:

For NYC employers with 11 or more employees: $9.15 per hour (i.e,. a $1.85 tip credit)

For NYC employers with 10 or fewer employees: $8.75 per hour (i.e., at $1.75 tip credit)

For Nassau, Suffolk and Westchester Country employers: $8.35 per hour (i.e., $1.65 tip credit)

For all other employers: $8.10 per hour (i.e., $1.60 tip credit)

 

The following is the tipped minimum wage for “food service workers”:

For NYC employers with 11 or more employees: $7.50 per hour (i.e., a $3.50 tip credit)

For NYC employers with 10 or fewer employees: $7.50 per hour (i.e., at $3.50 tip credit)

For Nassau, Suffolk and Westchester Country employers: $7.50 per hour (i.e., $2.50 tip credit)

For all other employers: $7.50 per hour (i.e., $2.20 tip credit)

 

Please contact Douglas Lipsky if you have any questions about this.