New York State currently has no single base wage in which employers are required to pay employees before tips. New York employers are authorized to pay tipped employees below the state minimum wage if the employees can earn enough tips on average to make up the difference. However, Gov. Andrew Cuomo announced the Miscellaneous Industries and Occupations Wage Order which asserts that by December 31, 2020, tipped employees will earn the minimum wage no matter how much they earn in tips. The order applies to an extensive group of workers employed by car washes, hair salons, valet parking attendants, and countless others. However, it does not apply to those in hospitality, agriculture, or building service industries. Workers in miscellaneous industries face a substantial risk of underpayment due not only to intentional wage theft, but to the complicated nature of how tip credit is calculated. By removing the tip credit system, tipped workers would be presented with a more predictable wage, avoiding any common wage fluctuations. The system will be removed in two phases over the course of the year, starting on June 30, 2020 with the cut of tip credits in half. By December 31, 2020 all employees covered by the order must be paid the following amounts:
- $15.00 per hour in New York City;
- $14.00 per hour in Westchester, Nassau and Suffolk Counties; and
- $12.50 per hour in the remainder of New York State.