California’s cautionary tale for New York restaurants

Posted 2.26.2018

A proposal from Gov. Andrew Cuomo to eliminate New York’s tip credit has worried restaurateurs, who are already reeling from recent wage hikes. Cuomo counsel Alphonso David recently dismissed these concerns by pointing west. “California, as an example, does not have a tipped wage, and the sky didn’t fall,” he said at a Crain’s forum.

David might want to take a closer look at the data. For many California restaurants and their employees, the sky has indeed fallen.

For those unacquainted with restaurant jargon, here’s a primer. In most states, wait staff can reach the minimum wage through a combination of tips and a lower base wage paid by the employer. If the two income sources don’t equal at least the legal minimum, employers must make up the difference.

Read the full story at Crain’s New York Business.

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