Halt! New York Labor Law
Farm Laborers Fair Labor Practices Act
Effective January 1, 2020:
New York rang in the new year with a pair of significant labor law developments. Governor Andrew Cuomo announced on December 31 that the Department of Labor would end the tip credit for “miscellaneous” industries by the end of 2020, and the following day he vetoed a bill that would have allowed for employees to obtain liens on their employers’ personal and real property when there are allegations that the employees were underpaid.
The elimination of the tip credit for “miscellaneous” industries by December 31, 2020 means that New York employers in industries other than agricultural, hospitality and building services will no longer be permitted to take advantage of a tip credit against the wages of their employees who customarily receive tips as part of their jobs.
Cuomo’s veto of the sweeping Unpaid Wages Lien Bill halts implementation of a law passed by the state senate and assembly that would have allowed employees to obtain a lien against their employers’ real and personal property when that employee claimed they were owed unpaid wages.
Tip Credit Eliminated for 'Miscellaneous' Industries
By the end of 2020, employers in “miscellaneous” industries in New York State will no longer be able to take advantage of a tip credit against the wages of their employees who customarily receive tips as part of their jobs. Importantly, this will not impact members of the hospitality industry, who will still be able to apply a tip credit against wages paid to tipped food service and service employees in restaurants and hotels.
As of December 31, 2020, employers who are covered by the state’s Minimum Wage Order for Miscellaneous Industries and Occupations (the Miscellaneous Industries Order) will no longer be able to take a tip credit against their employee’s wages. The Miscellaneous Industries and Occupations covers all employers in New York other than those in the agricultural, hospitality or building services industries). According to the Department of Labor’s estimates, the elimination of the tip credit in the Miscellaneous Industries Order will impact over 70,000 employees in New York State. Employers covered by the Miscellaneous Industries Order may currently take a tip credit against an employee’s wages if:
(1) The particular occupation in which the employee is engaged is one in which tips have customarily and usually constituted a part of the employee’s remuneration;
(2) The employee received tips in at least the amount of the claimed tip allowance; and
(3) The allowance is recorded on a weekly basis as a separate item in the wage record.
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