New York Proposes No More Tip Credits For Servers + Bartenders?

Governor Cuomo wants to elimiate the tip credit in New York State.

What is the New York State tip credit?

The tip credit allows tipped workers to be paid a lower minimum wage, as long as they earn at least the full minimum wage when their tips are included. If they don’t, the law requires that the employer pay the difference to the employee", according to Forbes.

Without the tip credit it is likely that the wages will go up, but without tips, many fear they will end up not making as much as they would with tips.

"All owners, we'd have to increase prices, cut staff, try and look at your budget see where else you can cut. I got my first waitressing job at 16 and iInow own a restaurant because of all the money I made in tips. I just don't understand why we're trying to fix something that's not broken, it's a culture I've been in all my life," said Elle Grenauer, the owner of the Glen Park Tavern on WIVB.

There was hearing this morning with the Department of Labor and people traveled from all over the State to have their voices heard.