Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 12 - DEPARTMENT OF LABORChapter II - DIVISION OF LABOR STANDARDSSubchapter B - Minimum Wage OrdersPart 146 - HOSPITALITY INDUSTRY
Subpart 146-1 - MINIMUM WAGE RATES
Section 146-1.3 - Tip credits

N.Y. Comp. Codes R. & Regs. Tit. 12 §§ 146-1.3

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Current through Register Vol. 46, No. 45, November 2, 2024
Section 146-1.3 - Tip credits

An employer may take a credit towards the basic minimum hourly rate if a service employee or food service worker receives enough tips and if the employee has been notified of the tip credit as required in section 146-2.2 of this Part. Such employees shall be considered "tipped employees."

(a)Tip credits for service employees.

A service employee shall receive a wage of at least the hourly cash wage rate listed below, and credit for tips shall not exceed the hourly credit rate listed below, provided that the weekly average of tips is at least the hourly tip threshold rate listed below and the total of tips received plus wages equals or exceeds the basic minimum hourly rate pursuant to section 146-1.2 of this Subpart.

(1) General. For service employees (other than at resort hotels) employed in:
(i) New York City by:
(a) Large employers of 11 or more employees:

$9.15 cash wage, $1.85 credit, $2.40 tip threshold on and after December 31, 2016;

$10.85 cash wage, $2.15 credit, $2.80 tip threshold on and after December 31, 2017;

$12.50 cash wage, $2.50 credit, $3.25 tip threshold on and after December 31, 2018;

(b) Small employer of 10 or fewer employees:

$8.75 cash wage, $1.75 credit, $2.30 tip threshold on and after December 31, 2016;

$10.00 cash wage, $2.00 credit, $2.60 tip threshold on and after December 31, 2017;

$11.25 cash wage, $2.25 credit, $2.95 tip threshold on and after December 31, 2018;

$12.50 cash wage, $2.50 credit, $3.25 tip threshold on and after December 31, 2019;

(ii) Remainder of downstate (Nassau, Suffolk and Westchester counties):

$8.35 cash wage, $1.65 credit, $2.15 tip threshold on and after December 31, 2016;

$9.15 cash wage, $1.85 credit, $2.40 tip threshold on and after December 31, 2017;

$10.00 cash wage, $2.00 credit, $2.60 tip threshold on and after December 31, 2018;

$10.85 cash wage, $2.15 credit, $2.80 tip threshold on and after December 31, 2019;

$11.65 cash wage, $2.35 credit, $3.05 tip threshold on and after December 31, 2020;

$12.50 cash wage, $2.50 credit, $3.25 tip threshold on and after December 31, 2021;

(iii) Remainder of state (outside of New York City and Nassau, Suffolk and Westchester counties)

$8.10 Cash Wage, $1.60 Credit, $2.10 Tip Threshold on and after December 31, 2016;

$8.65 Cash Wage, $1.75 Credit, $2.25 Tip Threshold on and after December 31, 2017;

$9.25 Cash Wage, $1.85 Credit, $2.40 Tip Threshold on and after December 31, 2018;

$9.85 Cash Wage, $1.95 Credit, $2.55 Tip Threshold on and after December 31, 2019;

$10.40 Cash Wage, $2.10 Credit, $2.70 Tip Threshold on and after December 31, 2020;

$11.00 Cash Wage, $2.20 Credit, $2.85 Tip Threshold on and after December 31, 2021;

$11.85 Cash Wage, $2.35 Credit, $3.05 Tip Threshold on and after December 31, 2022.

(2) Resorts. For service employees at resort hotels only, employed in:
(i) New York City by:
(a) Large employers of 11 or more employees:

$9.15 cash wage, $1.85 credit, $6.15 tip threshold on and after December 31, 2016;

$10.85 cash wage, $2.15 credit, $7.30 tip threshold on and after December 31, 2017;

$12.50 cash wage, $2.50 credit, $8.40 tip threshold on and after December 31, 2018;

(b) Small Employer of 10 or fewer employees:

$8.75 cash wage, $1.75 credit, $5.90 tip threshold on and after December 31, 2016;

$10.00 cash wage, $2.00 credit, $6.75 tip threshold on and after December 31, 2017;

$11.25 cash wage, $2.25 credit, $7.60 tip threshold on and after December 31, 2018;

$12.50 cash wage, $2.50 credit, $8.40 tip threshold on and after December 31, 2019;

(ii) Remainder of downstate (Nassau, Suffolk and Westchester counties):

$8.35 cash wage, $1.65 credit, $5.60 tip threshold on and after December 31, 2016;

$9.15 cash wage, $1.85 credit, $6.15 tip threshold on and after December 31, 2017;

$10.00 cash wage, $2.00 credit, $6.75 tip threshold on and after December 31, 2018;

$10.85 cash wage, $2.15 credit, $7.30 tip threshold on and after December 31, 2019;

$11.65 cash wage, $2.35 credit, $7.85 tip threshold on and after December 31, 2020;

$12.50 cash wage, $2.50 credit, $8.40 tip threshold on and after December 31, 2021.

(iii) Remainder of state (outside of New York City and Nassau, Suffolk and Westchester counties)

$8.10 Cash Wage, $1.60 Credit, $5.45 Tip Threshold on and after December 31, 2016;

$8.65 Cash Wage, $1.75 Credit, $5.85 Tip Threshold on and after December 31, 2017;

$9.25 Cash Wage, $1.85 Credit, $6.25 Tip Threshold on and after December 31, 2018;

$9.85 Cash Wage, $1.95 Credit, $6.60 Tip Threshold on and after December 31, 2019;

$10.40 Cash Wage, $2.10 Credit, $7.00 Tip Threshold on and after December 31, 2020;

$11.00 Cash Wage, $2.20 Credit, $7.40 Tip Threshold on and after December 31, 2021;

$11.85 Cash Wage, $2.35 Credit, $7.95 Tip Threshold on and after December 31, 2022.

(b)Tip credits for food service workers.

A food service worker shall receive a wage of at least the hourly cash wage rate listed below, and credit for tips shall not exceed the hourly credit rate listed below, provided that the total of tips received plus the wages equals or exceeds the hourly total rate listed below when working in:

(1) New York City for:
(i) Large employers of 11 or more employees:

$7.50 cash wage, $3.50 credit, $11.00 total on and after December 31, 2016;

$8.65 cash wage, $4.35 credit, $13.00 total on and after December 31, 2017;

$10.00 cash wage, $5.00 credit, $15.00 total on and after December 31, 2018;

(ii) Small employers of 10 or fewer employees:

$7.50 cash wage, $3.00 credit, $10.50 total on and after December 31, 2016;

$8.00 cash wage, $4.00 credit, $12.00 total on and after December 31, 2017;

$9.00 cash wage, $4.50 credit, $13.50 total on and after December 31, 2018;

$10.00 cash wage, $5.00 credit, $15.00 total on and after December 31, 2019;

(2) Remainder of downstate (Nassau, Suffolk and Westchester counties):

$7.50 cash wage, $2.50 credit, $10.00 total on and after December 31, 2016;

$7.50 cash wage, $3.50 credit, $11.00 total on and after December 31, 2017;

$8.00 cash wage, $4.00 credit, $12.00 total on and after December 31, 2018;

$8.65 cash wage, $4.35 credit, $13.00 total on and after December 31, 2019;

$9.35 cash wage, $4.65 credit, $14.00 total on and after December 31, 2020;

$10.00 cash wage, $5.00 credit, $15.00 total on and after December 31, 2021;

(3) Remainder of state (outside of New York City and Nassau, Suffolk and Westchester counties)

$7.50 Cash Wage, $2.20 Credit, $9.70 Total on and after December 31, 2016;

$7.50 Cash Wage, $2.90 Credit, $10.40 Total on and after December 31, 2017;

$7.50 Cash Wage, $3.60 Credit, $11.10 Total on and after December 31, 2018;

$7.85 Cash Wage, $3.95 Credit, $11.80 Total on and after December 31, 2019;

$8.35 Cash Wage, $4.15 Credit, $12.50 Total on and after December 31, 2020;

$8.80 Cash Wage, $4.40 Credit, $13.20 Total on and after December 31, 2021;

$9.45 Cash Wage, $4.75 Credit, $14.20 Total on and after December 31, 2022.

(c)Tip credit for fast food employees.

No tip credit is permitted for fast food employees.

N.Y. Comp. Codes R. & Regs. Tit. 12 §§ 146-1.3

Amended New York State Register December 23, 2015/Volume XXXVII, Issue 51, eff. 12/31/2015
Amended New York State Register December 28, 2016/Volume XXXVIII, Issue 52, eff. 12/31/2016
Amended New York State Register December 28, 2022/Volume XLIV, Issue 52, eff. 12/31/2022