Some restaurant workers in New York will receive an increase in minimum wage and overtime pay on December 31, 2013.
The minimum wage for cooks, dishwashers and other non-tipped employees will increase from $7.25 to $8.00 an hour. The overtime rate for employees making the minimum wage is calculated at 1 ½ times the minimum wage for all hours worked over 40 in a week. Because the minimum wage will increase, the overtime rate for employees earning the minimum wage will also increase from $10.88 an hour to $12.00 an hour.
Minimum wage rate paid to waiters, waitresses, bussers, runners and bartenders who receive tips will stay at $5.00 per hour. New York law permits employers to apply a tip credit and pay a reduced minimum wage to tipped employees. To use the tip credit, the worker must receive tips equal to or greater than the tip credit and the employer must give notice to the employee that the tip credit will be applied. Beginning December 31, 2013, the tip credit for these workers will increase to $3.00 an hour. However, due to the increase in the minimum wage, the new overtime rate for tipped employees in New York making $5.00 per hour will be $9.00 per hour (calculated by multiplying the full minimum wage by 1.5 and then subtracting the increased tip credit of $3.00).
Minimum wage rate paid to delivery workers, coat check and bathroom attendants that receive tips will stay at $5.65 per hour. Beginning December 31, 2013, the tip credit for these workers will increase to $2.35 an hour. The overtime rate for these workers will be $9.65 (calculated by multiplying the full minimum wage by 1.5 and then subtracting the increased tip credit of $2.65).