Tip Credit Elimination Fight
Once again, there is an aggressive fight to eliminate the Tip Credit in New York which would cost approximately $12,000 more per year to employ a full-time tipped employee, posing significant financial challenges for countless restaurants and bars in NYC that are still fighting to recover from the pandemic.
- There is also an aggressive campaign to increase New York’s minimum wage to $21.25 per hour by 2026.
This proposed minimum wage increase combined with eliminating the tip credit is a 113% increase, equaling a whopping $23,400 more per year to employ a full-time tipped employee, not even including the additional payroll taxes, etc.
Multiple that by the number of tipped workers you employ and calculate your new labor expenses!
NOW IS THE TIME TO JOIN THE NYC HOSPITALITY ALLIANCE IF YOU ARE NOT CURRENTLY A MEMBER. WE NEED YOUR SUPPORT TO ENSURE YOUR VOICE IS HEARD AND THIS MISGUIDED LOBBYING ATTEMPT TO ELIMINATE THE TIP CREDIT DOES NOT HAPPEN.
Not sure if your business is a member? Ask us at info@theNYCalliance.org
CLICK HERE to read an NYC Hospitality Alliance memo we circulated to state lawmakers explaining our position, facts, and why they must preserve the tip credit!