BILL NUMBER: S5176
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the labor law, in relation to establishing when a tip
credit applies to employees working at tipped and non-tipped occupations
on the same day
 
PURPOSE OR GENERAL IDEA OF BILL:
To allow a New York restaurant employee greater flexibility to work in a
tipped and non-tipped capacity in the same shift.
 
SUMMARY OF PROVISIONS:
Section 1 allows employees to work in a tipped and non-tipped occupation
on the same day, so long as the employer does not take the tip credit
for the time worked in the non-tipped capacity, if it exceeds twenty
percent of a worker's shift; the legislation further states that should
an error be made in taking the tip credit, the employer shall be liable
to the employee for whom the credit was improperly taken.
 
JUSTIFICATION:
The 80/20 rule creates operating challenges for employers while limiting
income and growth opportunity for employees. With the State opening more
and more each month, restaurants are going to be required to reopen with
significant new safety measures and protocols, which will require an
unprecedented level of flexibility for employees. Unfortunately, the
80/20 rule limits what additional work a tipped, front of the house
employee can do - thereby limiting opportunities for additional income
or shifts.
Reforming this rule will allow flexibility for employees without the
risk of permanently shutting down a business, hurting the local economy,
and eliminating service jobs permanently.
 
PRIOR LEGISLATIVE HISTORY:
2024: S8200 Comrie/ A3041 Pheffer Amato
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
N/A
 
EFFECTIVE DATE:
Immediate.