Employers Take Notice: The Increased Minimum Wage and Tip Credit Requires New Wage Theft Forms Be Completed By Each Employee
January 24, 2024
The minimum wage for workers across the State increased on December 31, 2023. In the Western New York Region the minimum wage increased to $15.00/hour including for worker’s in the service and food and beverage industries. Employers of tipped employees are typically entitled to offset employee wages with a Wage Tip Credit. See NYS DOL Hospitality Wage Order. The amount of the credit is dictated by the type of service work the employee is engaged in and what amount of non-tipped work the employee is performing.
To be able to take the full wage tip credit, the tipped employee must not do 20 percent or more of non-tipped work.
EFFECTIVE DECEMBER 31, 2023, the mandatory minimum wage for tipped food service employees in Western New York, defined as an employee primarily engaged in the serving of food and beverages to guests, patrons or customers in the hospitality industry, increased to $15.00. The tip credit also increased to $5.00 resulting in a wage paid to employees of $10.00 plus tips provided that the employee is not performing 20 percent or more of non-tipped work, which can include tasks such as cleaning, stocking, prepping, or breaking down after a shift.
EFFECTIVE DECEMBER 31, 2023, the mandatory minimum wage for tipped service employees in Western New York, defined as an employee, other than a food service worker or fast-food worker, who customarily receives tips of at least the Service Employee Minimum Tip Threshold amount of $3.20, increased to $15.00. The tip credit also increased to $2.50 resulting in a wage paid to employees of $12.50 plus tips so long as the employee is not performing 20 percent or more of non-tipped work. Employees must also make a minimum amount in tips per hour of $3.20.
Another key update that employers should be aware of is the requirement that all employees who saw their wages change because of the mandated minimum wage increases must complete the WTPA forms.
For example, if a food service employee was paid $9.45 per hour with the tip credit or $14.20 without, their wages were mandated to increase on December 31st to $10.00 with the $5.00 tip credit or $15.00 without the credit. This mandated wage increase triggers the necessity for new WTPA forms to be completed by every impacted employee.
WTPA forms must be completed, signed by the employee, the original be kept in the secure employee file and a copy must be provided to the employee.
Note: there are different forms based upon the employee’s pay rate structure, duties etc. Contact our office for assistance in confirming the pay rates, rules, regulations and forms that apply to your business and employees.
We work closely with employers to ensure that they are proactive and stay in compliance with state and federal employment laws. We also work with employers that have run afoul of any of these laws and regulations to mitigate the disruption to your business and allow you to focus on what you do best.
If you have any questions about this, or any other rules and regulations impacting your business operations, please give me or any member of our Labor and Employment Law team a call today. We are here to help.
Chanel T. McCarthy has more than ten years of experience assisting clients with their business needs - from lease agreements and contract negotiations to operations and employment matters. Chanel has a wide range of experience in business law including the distinct issues relative to small business, construction and hospitality. Chanel also brings a wealth of experience in the areas of trust and estate administration and litigation, and other matters before the Surrogate’s Court. She can be reached at 716-854-4300 ext. 254 or cmccarthy@gross-shuman.com.
