Tip Credit

The NYC Hospitality Alliance fought alongside a diverse coalition of restaurateurs, tipped workers, and advocates to save the tip credit. If eliminated, this would cost restaurants approximately $12,000 more per each full time tipped employee, jeopardizing the ability of small businesses to stay open and costing jobs. During the debate, we pointed out many of the inaccurate and misleading statements made about the tip credit by its opponents, and offered ways to address issues related to labor and equity while maintaining the tip credit.

Opponents of the tip credit continue fighting to eliminate it at a state and federal level, so we must stay vigilant on the matter, while also advocating to fix the 80/20 Rule, and to change the law to permit tip sharing with kitchen and other non-managerial workers, which will allow for more operational flexibility and more equitable workplace practices.