In the United States, 13.1 million workers are in the food service industry – waiters, waitresses, managers, entrepreneurs, franchisors, franchises, and business leaders. In New York, restaurants are a driving force of the economy employing 8 percent of New Yorkers.If you work in the restaurant business, you are probably familiar with the many employment law issues that exist in the industry. Employers are regularly sued for alleged violations of wage and hour laws to those that do not even exist.
Over the past year, more and more suits have been brought against employers regarding that handling of tips. A tip, or “gratuity,” is money given to an employee by a customer for a service provided. Any charge to the customer, other than food, beverages, lodging, or specified good, is a tip and must be given to the employee. All private sector employers and employees are subject to the provisions governing tips in New York, including the Hospitality Wage Order.
The New York Hospitality Wage Order permits tip sharing and tip pooling. The Wage Order was last updated in 2011 and changed previous rules regarding gratuity. Not only have they become stricter, but the rules have very specific mandates that can be easily missed. If you are concerned with your employer’s handling of tips or simply want to make sure all of your restaurant’s practices are up to date, contact a law firm specializing in New York City restaurant practices.
At the DiPasquale Law Group, our lawyers represent restaurant workers and owners in New York City with claims related to the Hospitality Wage Order and workers' rights, including failure to pay employees an hourly wage and overtime, improper tip handling or sharing, improper service charges, failure to train staff in the receipt of tips, and requiring employees to buy and launder their own uniforms without reimbursement.