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Expert Analysis

NY Wage Recommendations Could Increase Hospitality Costs

Law360, New York (March 9, 2015, 1:37 PM EDT) -- On Feb. 24, 2015, New York Acting Commissioner of Labor Mario J. Musolino accepted most of the New York Hospitality Wage Board's recommendations, which had been issued on Feb. 2. The accepted recommendations, which will become effective on Dec. 31, will have a significant impact on New York employers in the hospitality industry. They severely curtail the tip credit that hospitality employers can take toward their minimum wage obligations to their tipped workforce, thereby increasing by 50 percent the cash wage that must be paid to such employees. The accepted recommendations also signal that the tip credit in New York may be eliminated in the near future....

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