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'Want our employees to make a livable wage': One Fair Wage bill could nix subminimum wage for tip earners

If it passes, the "One Fair Wage" bill would phase out the subminimum wage for tipped workers and enable tip sharing with the back of the house.
Posted at 12:21 AM, Feb 15, 2024

BUFFALO, N.Y. (WKBW) — 7 News has turned our attention to New York State's "One Fair Wage" bill and taking a closer look at tipping.

Many dined out Wednesday evening to celebrate the holiday with a loved one.

So, did you leave a tip for your server?

According to Forbes, 95% of Americans shared they tip at least some of the time. Of that 95%, a majority said they tip from anywhere between 11% to 20% but the major commonality surrounding tipping etiquette: 1 in 3 people said they feel pressured to tip for service.

A leading cause of that pressure servers relying on tips to make money.

RELATED STORY: ‘You can hardly feed a family': Shoppers navigate higher food prices in-store and dining out

As of 2024, the minimum wage for food service workers is $10 an hour plus tips, but there is a new push to end subminimum wages for tip earners. This, as 94% of New York restaurant workers support having "One Fair Wage".

Wednesday night, 7 News' Pheben Kassahun brought this topic to two separate owners: one of which is already paying their employees a flat wage and another who said his business would not survive if wage pay out has to change.

"I personally have been in the industry for over 20 years. I started from the bottom and worked my way up," Hombre y Lobo co-owner Ryan DiFranco said.

Hombre y Lobo co-owner Ryan DiFranco opened up the trendy, Mexican street food restaurant in Downtown Buffalo about two years ago.

DiFranco said, "We love what we do because we're here because we love making food. It's like creating a home and inviting people into your home."

New York restaurants are only required to pay their workers 66% of the overall minimum wage which is about $8.35 to $10.40 per hour.

When it comes minimum wage, DiFranco said paying his employees at the minimum wage level is important.

DiFranco said, "Here at Hombre y Lobo, we do tip the normal minimum wage. It is something that we use as a way to get employees because it is hard sometimes to find people that actually really want to work. We feel as if we pay people that higher wage, we still have that advantage."

DiFranco told Kassahun told the restaurant has increased prices because of this, however, everything here from his staff, to the ingredients used for his dishes, are local so money spent is staying in Western New York.

The restaurant owner added, "It is more of a counter service. You come in a little more casual, so our tips aren't as much as your 15%, 20% plus, as a whole. That's kind of where we base our that we want our employees to make a livable wage so we pay a little bit higher to make up for that."

If it passes, the "One Fair Wage" bill would phase out the subminimum wage for tipped workers and enable tip sharing with the back of the house.

Kassahun spoke with Josh Holtzman, co-owner of Buffalo Iron Works. As a bar and music venue owner himself, he explained he has mixed feelings.

"On both ends, it's good and bad," Buffalo Iron Works co-owner Josh Holtzman said. "As a person and as a person for the people so-to-speak, I think it's fantastic because I think everybody deserves a living wage. I think there are so many situations where people are struggling out there and the cost of everything is just skyrocketing."

Holtzman added if the bill passes, it will not be the revenue driver for many businesses.

"I think that it's something where I hesitate the state making that decision and not actually hearing out all the small businesses, both the good and the bad and really what could come from it because if you put enough on the small businesses in a negative way, and they start closing down, this wouldn't be a conversation at all and people wouldn't have a place to work, Holtzman said.