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New wage order means pay changes for hospitality employers

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in Compensation and Benefits

by Subhash Viswanathan, Esq.

New York employers in the hotel and restaurant industry have a new pay rule to work with, changing how tip income is handled and tweaking other details that affect how much pay workers take home.

The New York State Department of Labor’s Hospitality Industry Wage Order became effective on Jan. 1. A grace period was in effect until Feb. 28, but employers are expected to be fully compliant by March 1.

Note: Despite the grace period, hospitality workers affected by the new order must be paid all additional wages owed to them by March 1. That means employers must retroactively calculate the additional pay going back to Jan. 1.

Employers covered by the wage order must post a notice regarding the implementation period and employees’ right to retroactive wages.

Here’s a summary of changes under the Hospitality Industry Wage Order:

Tip credit changes

Under the old Restaurant Industry Wage Order, employers...(register to read more)

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