WHY RESTAURANT OWNERS IN NEW YORK WANT TO PRESERVE THE TIP CREDIT?
- Because their restaurant's financial model is developed based on the Tip Credit and their profitability depends on it.
- Because it’s so expensive to run a business in New York that they will have to cut workers’ hours, consolidate and eliminate jobs.
- By the end of the year, recent labor mandates for restaurants around the state include a doubling of the tip wage in a mere three years and eliminating the tip credit would triple it. Six consecutive, annual minimum wage increases. A $300 increase to the minimum weekly rate for salaried employees and other well intended but expensive benefits that business owners are still figuring out how to afford.
- They don’t want to join the club of the countless other restaurants that have already been forced to close and layoff their employees due to the expensive business environment.
- If the Tip Credit were eliminated they would have to drastically modify their business model in the hopes of staying in business, which creates many challenges and scary unknowns.