2.jpg
 

WHY TIPPED EMPLOYEES IN NEW YORK WANT TO PRESERVE THE TIP CREDIT

  • Tens of thousands of tipped employees are earning good livings through their tips and they don’t want government to mess it up for them.
     
  • In 2016 after Maine eliminated their Tip Credit, restaurant workers successfully lobbied their state government and got the tip credit reinstated because they recognized the negative impact it could have on their take home pay and job. Tipped workers realized:
     
    • Restaurants have to significantly increase menus prices when the tip credit is eliminated to cover the huge increase in labor costs. This results in less take home pay for workers because customers would leave smaller tips and dine out less.
       
    • That to control costs restaurants move to a no tipping or different business model that reduced their take home pay.
       
    • Restaurants were forced to reduce workers’ hours and eliminate jobs.
       
    • Restaurants began using technology more to replace jobs such as introducing table side tablets. 
       
    • Restaurants eliminated jobs like bussers and food runners, while servers had to pick up the slack.

Join the Coalition & Subscribe to Newsletter