Minimum Wage for Tipped Workers
SHARE

Overview

From December 31 2020 through December 30, 2021, the minimum hourly rates that employers must pay to tipped workers are:

  NYC Long Island and
Westchester County
Remainder of NYS
Service Employees $12.50 Cash Wage
$2.50 Tip Credit

$11.65 Cash Wage
$2.35 Tip Credit

$10.40 Cash Wage
$2.10 Tip Credit
Food Service Workers $10.00 Cash Wage
$5.00 Tip Credit
$9.35 Cash Wage
$4.65 Tip Credit
$8.35 Cash Wage
$4.15 Tip Credit

 

Combining Cash Wages and Tips

New York State law allows employers in all industries other than building service to satisfy the minimum wage by combining a “cash wage” paid by the employer with a credit or allowance for tips that the employee receives from customers. For example, the minimum wage for food service workers in New York City is $15.00 per hour. Their employers can satisfy the minimum wage by combining a cash wage of at least $10.00 with a tip allowance of no more than $5.00 per hour.

Limitations in Hospitality Industry

Employers in the hospitality industry may not take tip credits for:

  • Days when tipped workers spend more than two hours, or twenty percent of a shift, doing non-tipped work 
  • Weeks when service employees receive tips averaging less per hour than the following:
  NYC Long Island and
Westchester County
Remainder of NYS
In resort hotels $8.40 $7.85 $7.00
In restaurants and all-year hotels $3.25 $3.25 $2.70

 

Limitations in Other Industries

No tip credit is available in the building service Industry.

The tip credit is not available when weekly tips average less than the minimum amount specified for the location and size of employer.

Please Note: As of December 31, 2020, tip allowances are not permitted in miscellaneous industries (all other industries except hospitality, farm workers, and building service). Employers are not permitted to keep or retain any portion of a tip that an employee receives.

Overtime

For tipped workers, employers must pay overtime hours worked at time-and-one-half the minimum wage rate, less the applicable tip credit.

Contact

If you need additional assistance, or want to file a complaint, please call 1-888-4NYSDOL (1-888-469-7365).