By Payroll and Entitlements Editorial Staff
The New York State Department of Labor is issuing an order eliminating the subminimum wage for miscellaneous industries statewide, according to Governor Andrew M. Cuomo in a December 31, 2019, press release. The order impacts over 70,000 tipped employees, including nail salon workers, hairdressers, aestheticians, car wash workers, valet parking attendants, door-persons, tow truck drivers, dog groomers and tour guides.
The elimination of the tip wage for miscellaneous industries will be phased in over a one-year period, an aggressive timetable that will provide employees relief while also giving businesses time to adjust to these changes as to not inadvertently incur job loss.
The schedule includes:
- On June 30, 2020, the difference between the minimum wage and current tip wages will be cut in half.
- On December 31, 2020 the tip wage will be completely eliminated and workers in these effected industries will be making the normal minimum wage.
The end of the tip credit for miscellaneous industries comes as the Department of Labor released a report and recommendations after conducting hearings and receiving testimony from individuals across tipped industries.
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