Tip Credits and the Rising Minimum Wage

Does your brewery include a bar, restaurant and/or tasting room? If so, it’s worth taking a look at how your bartenders are compensated. If your bartenders are paid primarily by tips, then you may consider taking a tip credit against the hourly minimum wage. Taking a tip credit allows your business to pay a lower hourly minimum wage than the regular state minimum, and lets your bartenders enjoy the benefits of earning tips that often far outpace the hourly minimum. But taking a tip credit also comes with added responsibilities for your business. In New York, this means you need to be cognizant of which employees share tips and how tips are distributed at the end of a shift. New York has very specific rules regarding tipping practices, and a failure to abide by these rules can be costly. The hospitality and restaurant industries have been in the crosshairs of plaintiffs’ attorneys and the Department of Labor recently, so now is as good a time as any to ensure that your tip practices comply with the law.



Joe Carello