Minimum Wage for New York Cityfs Tipped Workers Will Increase to $7.50
By PATRICK McGEEHAN
FEB. 24, 2015 - New York Times
Continuing to push for higher wages
for the statefs lowest-paid workers, Gov. Andrew M. Cuomo announced on Tuesday
that all of the waiters, waitresses and others who work for tips in New York
City will soon get a raise of their minimum wage to $7.50 an hour.
The increase was ordered by the
acting labor commissioner, Mario J. Musolino, and will go into effect at the end
of the year. It will consolidate three categories of tipped workers — whose
minimum hourly wages range from $4.90 to $5.65 — into a single class to be paid
at least $7.50 an hour.
The governor appeared with labor
leaders at a union hall in Manhattan to celebrate Mr. Musolinofs decision and to
repeat his own call for an increase in the statewide minimum wage for nontipped
workers to $10.50 an hour. Mr. Cuomo also restated his view that the general
minimum wage in the city should be even higher, $11.50 an hour, because of the
higher cost of living.
The statewide minimum is scheduled
to rise to $9, from $8.75, at the end of the year. But Mr. Cuomo said that
increase, which translates to about $18,000 a year before taxes, was
insufficient.
gYou cannot raise a family, pay
for rent and food and insurance and health care on $18,000 a year in the city of
New York,h Mr. Cuomo, a Democrat, said from a stage at the home base of the New
York Hotel and Motel Trades Council. He said the original concept of the minimum
wage was that it be enough to support a family with dignity, but he added, gIf
itfs $18,000 in New York City today, you canft get there.h
The cityfs mayor, Bill de Blasio,
would agree with Mr. Cuomo, to a point. Mayor de Blasio, a Democrat, has sought
approval from the State Legislature to raise the minimum wage in the city even
higher, first to $13 an hour and eventually to $15. But Mr. Cuomo has
called that proposal a gnonstarter.h
What is more certain is that
tipped workers — more than 250,000 statewide — will receive the first increase
in their minimum wage since 2011. That news cheered Ondre Anderson, who said he
worked as a waiter at a gcasual fine diningh restaurant in the Flatiron district
of Manhattan.
gWhen youfre working for $5 an
hour, thatfs basically just food money for the month,h said Mr. Anderson, 33,
who added that he hoped to earn enough to move from a homeless shelter in Queens
into an apartment. gWe never know where our tips are coming from. Some people
tip and some people donft.h
Mr. Anderson said he figured he
would earn about $75 more a week after the increase. gEvery little bit does
help,h he said.
But the restaurant industry
criticized the wage increase as too big and counterproductive.
gThe crazy part about this is
youfre literally increasing payroll for restaurant groups by 50 percent,h said
Chris Hickey, regional director for the New York Restaurant Association. gItfs
going to hit small businesses the hardest.h
Restaurant owners will not be able
to absorb the cost increase or pass all of it along to their customers in the
form of price increases, Mr. Hickey said. That inevitably will lead them to trim
their payrolls by eliminating as much as one-fifth of their tipped workers,
including waiters, waitresses and bartenders, he said.
Mr. Hickey said that restaurants
were gat an impasse at this pointh and that many of them might decide to abandon
the tradition of having servers rely on tips from customers for much, if not
most, of their pay. As an example, he cited Dirt
Candy, a vegetarian restaurant that opened three weeks ago on the Lower East
Side of Manhattan with a no-tipping policy.
Amanda Cohen, the chef who opened
Dirt Candy, said she paid her employees at least $15 an hour and added an
gadministrative feeh of 20 percent onto each check to cover the higher wages.
More restaurants are likely to follow her lead now that the wage increase is
imminent, she predicted.
gI canft imagine it wonft change
the way restaurants operate,h Ms. Cohen said. gTheyfre going to have to raise
their prices or go to a new tipping model. My guess is that restaurants are
going to have to raise their prices and be honest about it and say this is what
it costs to operate this business.h
In his remarks to the union
workers and their leaders, Mr. Cuomo expressed little sympathy for business
ownersf complaints about having to pay higher wages.
gWe want business to do well so
that then these leaders can sit down with business and say, eWe want our fair
share of whatfs going on,f h the governor said, adding that the statefs
economy had been producing jobs at a fast rate. gSo when they sit down with the
leaders of business, the leaders of business cannot say, eIfm broke.f Theyfre
doing great, and we know theyfre doing great.h