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WHAT IS THE TIP CREDIT?

In 2016, the New York State Legislature set the tipped wage at 2/3 of the full minimum wage, the remaining 1/3 is the tip credit. This allows employers who rely on razor thin profit margins to save on operations and allows employees the opportunity to earn more money in tips.  If an employee's tipped wage and tips ever equal less than the minimum wage, the employer is required by law to make up the difference.