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Tip Credit Debate on T.V.

March 2, 2024

The NYC Hospitality Alliance’s Andrew Rigie appeared on NY1 News’ “The Rush Hour” show to debate Saru Jayaraman who leads the aggressive charge to eliminate the restaurant industry “Tip Credit,” in New York and around the county. 

You may watch the T.V. segment here: How should restaurant workers be paid?

The Tip Credit is a very complex issue, no doubt, with many strong opinions. The NYC Hospitality Alliance’s advocacy along with other organizations, restaurant owners/operators, and tipped workers has helped preserve the Tip Credit in New York. Now, after it was recently eliminated in Washington D.C. and Chicago there is yet again another well-funded and aggressive lobbying campaign to eliminate New York’s tip credit.

As you may recall, a survey and report released last month by the NYC Hospitality Alliance, which included a survey of 879 establishments across the five boroughs found nearly all of them oppose eliminating the tip credit, which legally requires that restaurant workers earn the recently increased minimum wage while also protecting their ability to earn much more than the minimum wage with tips. You may CLICK HERE to read the press release and full report

As survey report released earlier this week of servers and bartenders in New York’s neighboring state of Connecticut found that 96% are in favor of Connecticut’s current tip credit system.

Facts at a Glance: Eliminating the Tip Credit in New York would cost restaurants, bars, and nightclubs approximately $12,000+ per year to employee each full time tipped employee.  

  • Do the math: To calculate the cost to your business(es) if the tip credit is eliminated in New York: (Enter Number of Full Time and Full Time Equivalent Tipped Employees) X $12,000 = Total Annual Cost


Survey at a Glance:


  • 88% of those Establishments Surveyed by New York City Hospitality Alliance Are ‘Extremely Concerned’ About Legislative Proposals to End the Tip Credit, Saying it Would be a ‘Disaster’ for Their Businesses


  • 76% of Establishments Would Increase Menu Prices if the Tip Credit is Eliminated to Offset the Big Increase in Expenses to their Small Businesses, and 42% Would also Consider Eliminating Tipping to Keep the Overall Cost Down for Consumers


  • 67% Would Cut Staff; 54% Would Consider Closing A Business


  • 87% said they would not vote for an elected official who supports eliminating the tip credit