NY Department of Labor Adopts Hospitality Wage Board Proposal

The state of New York increased the general minimum wage rate in a series of three annual increments starting in 2013; as a result, a Wage Board was appointed to investigate and recommend any changes to service employees’ minimum wage. On February 24, 2015, the Acting Commissioner of the New York Department of Labor adopted the appointed Wage Board’s proposal.

Under the order, effective December 31, 2015, the new wage rate will increase to $7.50 per hour from $4.90, $5.00, and $5.65. The new wage rate will apply to food service employees, service employees, and service employees in resort hotels. This uniform rate was adopted to simplify the regulatory scheme and make it easier to implement.

The Acting Commissioner also adopted the recommendation to increase the minimum wage rate for tipped employees in New York City, if legislature increases a separate minimum wage rate for the city. The Wage Board has also recommended increasing the tip allowance to $1.00 per hour when the weekly average of cash wages and tips equaled or exceeded the hourly minimum wage rate by 150% in New York City or 120% in the rest of the state, but was rejected by the Acting Commissioner.

Compliance Poster Company will continue to follow the new order.