Bill > S05176

This bill amends the New York labor law to clarify when employers can apply a tip credit for workers who perform both tipped and non-tipped job duties on the same day. Specifically, if a service employee or food service worker spends more than 20% of their shift performing non-tipped work, the employer cannot apply a tip credit for the time spent on those non-tipped tasks. The bill distinguishes between non-tipped work and "customary side work" that is normally part of a tipped employee's regular job duties. Additionally, the bill includes a provision that if an employer improperly takes a tip credit for an employee in a shared tip pool, the employer will only be liable to the employee for whom the tip credit was incorrectly applied. A tip credit allows employers to pay tipped workers a lower minimum wage, with the expectation that tips will make up the difference to reach the standard minimum wage. This bill aims to protect workers by ensuring they receive full minimum wage for substantial non-tipped work.

Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/S5176