New Minimum Wage, Tip Pooling Law for NYC Restaurants

The State's Department of Labor just filed a wage order that will increase minimum wage across all service industries, placing a little more money in the pockets of servers across the city while forcing restaurateurs to overhaul their payroll systems in two weeks. Starting on January 1 in New York, tipped food service employees will receive a minimum hourly wage of $5 instead of the current $4.65.

Some employers are not exactly thrilled at this New Year's deadline. Says the owner rooftop bar of 230 Fifth, "It's so preposterous that it's guaranteed to lead to an allegation in all future labor law litigation that they shortchanged people on this particular day."

Meanwhile, the new wage law includes provisions allowing employers to mandate tip pooling and "exempting restaurants from giving employees a weekly allowance for 'wash-and-wear' uniforms." Now, restaurants must pay workers for an extra hour if their shift is over 10 hours.
· New Wage, Tip Rules Are on the Way for Restaurants [WSJ]