The Department of Labor Acting Commissioner announced today that he will be following the suggestions of the Wage Board to increase the cash wage for tipped workers from $5.00 to $7.50 effective December 31st, 2015. Melissa Fleischut, President and CEO of the NYS Restaurant Association voiced her strong opinion on the subject by stating, “It’s troubling that the Acting Commissioner ignored legislative precedent and the pleas of nearly 1,000 hospitality industry representatives who asked him for a moderate increase phased in over time…By rubberstamping an extreme, unprecedented 50 percent increase it becomes hard to believe New York is really ‘Open for Business.’”

The tip credit for food service workers has historically been between 60-70 percent of the full minimum wage. Seventy percent of the current minimum wage is $6.13. This increase raises the percentage to an unprecedented high of 83 percent. To learn more about the issue and to stay informed on all the developments, visit the New York Restaurant Association here.