![]() The worker must receive a cash wage of at least $12.50 per hour, for total minimum compensation of $15.00. For the credit to apply, such worker must average $8.40 per hour in tips. To be eligible for a tip credit, such workers must average at least $3.25 in tip earnings per hour.įor resort hotels, the new minimum wages and tip credit for non-food service workers is as follows: 5įor resort hotels in NYC, the allowable tip credit for non-food service workers remains $2.50 per hour. In New York City, the allowable tip credit for such service workers will not change this year and remains at $2.50 per hour, with a minimum direct cash wage of $12.50 per hour. Minimum Average of Tip Earnings Per Hour to be Eligible for the Tip Credit The amount of the tip credit, however, changes as of Decemas follows:įor non-food service workers, such as delivery staff or bathroom attendants, the new allowable tip credit is as follows, except for resort hotels: 4 These businesses may still apply a tip credit towards minimum wages. The elimination of the tip credit is not applicable to all employers and will not affect employers that operate restaurants and hotels and who are covered by the Hospitality Industry Wage Order. 3 Accordingly, employers of these employees must ensure that they begin paying the full minimum wage applicable in the geographic area in which the employee works. ![]() This change will affect employers of employees such as parking lot attendants, valets, hair dressers, nail salon workers, skycaps and other non-hospitality workers who often receive tips. Effective December 31, 2020, such employers may no longer apply a tip credit towards minimum wage for employees who regularly receive tips. Effective June 30, 2020, these employers were required to reduce the applied tip credit by fifty percent. Tip Credit Changes – Miscellaneous Industries and OccupationsĮmployers subject to the Wage Order for Miscellaneous Industries and Occupation face a significant but poorly publicized change. The minimum salary threshold in New York City will remain at $1,125.00 per week. Remainder of New York State except New York City Beginning December 31, 2020, the minimum salaries for executive and administrative exemptions from overtime will also increase, as follows: 2 Pay increases are not limited to hourly employees. Specifically, the minimum will increase from $13.00 to $14.00 per hour for employees working in Long Island and Westchester, and from $11.80 per hour to $12.50 per hour for the rest of the state except New York City, where the minimum is already $15.00 per hour and will remain so. And most are probably not aware that they may no longer be able to take a tip credit towards minimum wage for many categories of employees for whom a tip credit has long been available.Įffective December 31, 2020, the minimum wage will increase for all private sector employees in the state except for those who work in New York City. While many employers are aware of the forthcoming increase in minimum wages, many may not be aware that minimum salary levels to be exempt from overtime are also increasing. While most people will not be sad to leave 2020 behind, employers across much of New York State will see an increase to their labor costs in 2021, even though much of the state is navigating recession-like conditions caused by the Covid-19 pandemic.
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