New York Minimum Wage 2026

New York permits hospitality industry employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage for the employee’s region. Tip credit provisions are established under Part 146 of the New York Hospitality Industry Wage Order.

Tipped Employee Cash Wage Rates (2026)

Food Service Workers

Food service workers are employees primarily engaged in serving food or beverages to guests, patrons, or customers in the hospitality industry, including wait staff, bartenders, captains, and bussing personnel who regularly receive tips. Delivery workers are not classified as food service workers.

New York City, Nassau, Suffolk, and Westchester Counties:

• Cash wage requirement: $11.35 per hour
• Maximum tip credit: $5.65 per hour
• Total minimum compensation: $17.00 per hour (cash wage + tips)

Remainder of New York State:

• Cash wage requirement: $10.70 per hour
• Maximum tip credit: $5.30 per hour
• Total minimum compensation: $16.00 per hour (cash wage + tips)

Service Employees

Service employees are employees, other than food service workers or fast food employees, who customarily receive tips. This category includes hotel workers, parking attendants, valets, and other tipped service positions outside of food service.

New York City, Nassau, Suffolk, and Westchester Counties:

• Cash wage requirement: $14.15 per hour
• Maximum tip credit: $2.85 per hour
• Total minimum compensation: $17.00 per hour (cash wage + tips)

Remainder of New York State:

• Cash wage requirement: $13.30 per hour
• Maximum tip credit: $2.70 per hour
• Total minimum compensation: $16.00 per hour (cash wage + tips)

Who Qualifies as a Tipped Employee

Under New York law, a tipped employee must customarily and regularly receive tips. “Customarily and regularly” means that tips are expected in the occupation and are received on a consistent basis, not occasionally or sporadically. The Hospitality Industry Wage Order establishes minimum tip thresholds that employees must meet weekly for employers to claim a tip credit.

Weekly Tip Thresholds (Downstate – NYC, Nassau, Suffolk, Westchester):

• Food service workers: Must average at least $3.65 per hour in tips
• Service employees: Must average at least $3.65 per hour in tips

Weekly Tip Thresholds (Upstate – Remainder of State):

• Food service workers: Must average at least $3.45 per hour in tips
• Service employees: Must average at least $3.45 per hour in tips

If an employee’s average weekly tips do not exceed the threshold, the employer cannot use the tip credit calculation and must pay the full minimum wage in cash.

Employer Obligations for Tipped Workers

Employers who claim a tip credit must comply with strict notification and recordkeeping requirements:

1. Written Notice Requirement: Before claiming a tip credit, employers must provide written notice to each tipped employee stating:
   • The cash wage being paid
   • The amount of tip credit being claimed
   • That tips are the employee’s property
   • That the employer will pay the difference if tips plus cash wages do not equal the full minimum wage
2. Ensure Total Compensation: Employers must ensure that each tipped employee’s total compensation (cash wages plus tips) equals or exceeds the full minimum wage for all hours worked in each workweek. If tips fall short in any week, the employer must make up the difference.
3. Maintain Accurate Records: Employers must maintain detailed records including:
   • Daily log of tips collected by each employee on each shift (cash and credit card)
   • Hours worked by each tipped employee
   • Cash wages paid
   • Tips reported by employees
   • Documentation that total compensation met minimum wage requirements
4. Limits on Tip Credit: Employers may only claim tip credits for time when employees are performing tip-producing work. The tip credit cannot be claimed:
   • On days when employees work more than 2 hours or 20% of their shift completing non-tip work
   • For time spent on duties that do not customarily generate tips
5. Fast Food Exemption: Fast food employers (chains with 30+ locations nationally) cannot take tip credits, even if employees receive tips. Fast food workers must be paid the full minimum wage in cash.

Tip Pooling and Sharing

New York law permits voluntary tip pooling arrangements among employees who customarily receive tips. The Hospitality Industry Wage Order establishes specific rules:

Permitted Participants: Only employees who directly provide service to customers and customarily receive tips may participate in tip pools. This typically includes:

• Wait staff
• Bartenders
• Bussing staff
• Food runners
• Other front-of-house service positions

Prohibited Participants: The following individuals may not receive any portion of tips or participate in tip pools:

• Managers and supervisors
• Owners and proprietors
• Chefs and cooks (except at establishments where they directly serve customers)
• Dishwashers
• Other back-of-house staff who do not directly serve customers

Employer Recordkeeping for Tip Pools: Employers who implement tip sharing or tip pooling must maintain records including:

• A daily log of tips collected by each employee on each shift
• A list of occupations eligible to receive tips through the pool
• The shares of tips each occupation is scheduled to receive
• The amount in tips each employee receives from the pool, by date

Mandatory Service Charges: A charge purported to be a gratuity must be distributed in full as gratuities to service employees or food service workers. Employers may not retain any part of an amount designated as a gratuity. However, if a charge is clearly identified as a “service charge” rather than a gratuity, it may be treated as revenue to the establishment rather than employee tips.

Tip Credit Calculation for Overtime

When calculating overtime pay for tipped employees, employers must use the employee’s regular rate of pay before subtracting the tip credit. The overtime rate is calculated as:

Overtime Rate = (Regular Rate Before Tip Credit × 1.5) – Tip Credit

For example, for a downstate food service worker:

• Full minimum wage (regular rate): $17.00/hour
• Overtime rate calculation: ($17.00 × 1.5) – $5.65 = $25.50 – $5.65 = $19.85/hour cash wage for overtime hours
• Plus tips received during overtime hours

Credit Card Tips and Processing Fees

Employers may not deduct credit card processing fees from employee tips. If a customer leaves a tip via credit card, the employee must receive the full tip amount. Any fees charged by credit card processors are a cost of doing business that the employer must absorb.

Uniform Maintenance Allowance

Employers who require tipped employees to wear uniforms but do not launder and maintain the uniforms themselves must provide a uniform maintenance allowance. As of January 1, 2026, the required weekly uniform allowance is:

Downstate (NYC, Nassau, Suffolk, Westchester): Amount varies by position and wage order
Upstate (Remainder of State): Amount varies by position and wage order

Specific uniform allowance rates are published in the applicable New York Department of Labor Wage Orders.

Meal Credits

Hospitality employers may take a credit for meals provided to employees as part of their wages, subject to strict requirements. According to the Hospitality Industry Wage Order, meals must:

• Be furnished to employees at times when they customarily eat
• Include at least one type of food from four categories:
  1. Fruits or vegetables
  2. Grains or potatoes
  3. Eggs, meat, fish, poultry, dairy, or legumes
  4. Tea, coffee, milk, or juice

Meal credit rates are adjusted annually and are specified in the wage orders. Employers who claim meal credits must maintain records documenting the meals provided and their value.

Violations and Penalties

Employers who fail to properly comply with tip credit requirements face:

• Back wage liability for the difference between wages paid and full minimum wage
• Liquidated damages equal to the amount of underpayment
• Civil penalties up to 200% of unpaid wages
• Criminal prosecution for willful violations

The New York State Department of Labor enforces tip credit requirements and investigates complaints of tip credit violations. Employees who believe they have not been properly compensated may file complaints by calling 888-469-7365 or visiting the Department’s website.