Minimum Wage Tipped Credit (S.1760/A.1240) | 2019

March 20th, 2019

AN ACT to amend the labor law, in relation to the minimum wage

S.1760 (Ramos)/A.1240 (Jaffee)

MEMORANDUM IN OPPOSITION

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York, opposes this legislation.

Elimination of the tipped wage credit is an effort to address a problem that simply does not exist. The feedback to this proposal from those impacted – including business owners, consumers and, most importantly, employees – has been overwhelmingly negative.

If minimum wage tip credits are eliminated in New York State, restaurant and bar owners will face only bad options – raising prices, cutting their staff or reducing their business hours to manage the higher labor costs that the state is mandating. In some cases, restaurants will be unable to do so and will have to close.

For employees, eliminating minimum wage tip credits may mean a loss in their income. Many employees in this industry make far more than minimum wage thanks to the tips they receive. And consumers will experience higher prices and see their household budgets stretched thinner.

This solution will create its own problems and exacerbate the single biggest problem we face in Upstate – a struggling economy. Eliminating the minimum wage tip credit in New York State will hurt businesses, hurt our economy and hurt employees.

For these reasons, we oppose the enactment of this legislation.