Servers push to keep tip credit intact

Posted at 11:30 PM, Feb 26, 2018
and last updated 2018-02-26 23:30:46-05

There's growing pushback from the food service industry to Governor Cuomo’s proposed elimination of the minimum wage tip credit.

This credit allows business owners to pay tipped employees $7.50 per hour. That's less than minimum wage. The belief is they'll make up the difference in tips.

The governor instead wants to require employers to pay workers the minimum wage of $10.40.

Both restaurateurs and servers, are worried about the potential negative impacts, of an increase.

“It would affect our entire income,” said Rosely Madison at the Irishman in Williamsville. Madison works as a server for Osteria 166 in Buffalo.

She believes employers will be forced to lay off workers and says customers will have less of an incentive to tip.

“It's a really bad idea. I think that every server that I have ever known would never want this,” added Madison.

The state is only looking into the eliminating the tip credit. A release from the governor’s office states the removing the credit would be fairer for all workers. Specifically saying, it help women and minorities receive equal pay.

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