A year-end order issued on Tuesday by state labor officials will eliminate the subminimum wage for workers in so-called “miscellaneous” industries across the state.
The order is expected to affect more than 70,000 tipped wage employees, according to an announcement by Gov. Andrew Cuomo. The employees range from being in the beauty industry, car washes, valet parking attendants, door people, tour guides, and tow truck drivers — all of whom will be affected by the order.
“In New York, we believe in a fair day’s pay for a fair day’s work,” Cuomo said. “But after an exhaustive investigation conducted by the Department of Labor, it’s clear the tip system in many situations is needlessly complicated, allowing unscrupulous businesses to flout our nation-leading minimum wage laws and robbing workers of the paycheck they earned. That ends now. ”
Elimination of the tipped wage for workers in those classified “miscellaneous” industries will be phased in over a one-year period — a move meant to provide an adjustment period for the businesses affected.
The timetable laid out by the Department of Labor will have the difference between the minimum wage and the current tip wage cut in half by June 30. A year from now the tipped wage will be completely phased out. The minimum wage for workers in New York City will then reach $15 a year from now.
On Long Island and in Westchester County, the wage will grow to $14 by the end of 2020. For the rest of the state, the minimum wage will reach $12.50 by the end of 2020.