S T A T E   O F   N E W   Y O R K
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                                  10175

                          I N  A S S E M B L Y

                              May 16, 2016
                               ___________

Introduced by M. of A. CAHILL -- read once and referred to the Committee
  on Labor

AN  ACT  to  amend  the labor law, in relation to the tipping and hourly
  wages of food service workers and back-of-the-house employees

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 651 of the labor law is amended by adding three new
subdivisions 10, 11 and 12 to read as follows:
  10.  "BACK-OF-THE-HOUSE  EMPLOYEE" MEANS AN EMPLOYEE PRIMARILY ENGAGED
IN THE PREPARING OF FOOD OR BEVERAGES OR WORK DIRECTLY  RELATED  TO  THE
FUNCTIONALITY OF A KITCHEN OR FOOD AND BEVERAGE PREPARATION AREA WHEREBY
THE  EMPLOYEE  DOES NOT INTERACT WITH PATRONS OR CUSTOMERS A MAJORITY OF
THE TIME. THIS SHALL INCLUDE, BUT NOT BE LIMITED TO,  EMPLOYEES  IN  THE
HOTEL OR RESTAURANT INDUSTRIES WHO SERVE AS CHEFS, PANTRY OR PREP COOKS,
LINE COOKS, SHORT ORDER COOKS, EXPEDITERS, KITCHEN HANDS AND DISHWASHERS
WHO  ARE  PROHIBITED FROM RECEIVING TIPS FROM GUESTS, PATRONS OR CUSTOM-
ERS.
  11. "TIP SHARING" IS THE PRACTICE BY WHICH A DIRECTLY TIPPED  EMPLOYEE
GIVES  A  PORTION OF HIS OR HER TIPS TO ANOTHER SERVICE EMPLOYEE OR FOOD
SERVICE WORKER WHO PARTICIPATED IN PROVIDING SERVICE  TO  CUSTOMERS  AND
KEEPS THE BALANCE.
  12. "TIP POOLING" IS THE PRACTICE BY WHICH THE TIP EARNINGS OF DIRECT-
LY  TIPPED  EMPLOYEES  ARE INTERMINGLED IN A COMMON POOL AND THEN REDIS-
TRIBUTED AMONG DIRECTLY AND INDIRECTLY TIPPED EMPLOYEES.
  S 2. The labor law is amended by adding a new section 652-a to read as
follows:
  S 652-A. TIP SHARING AND TIP POOLING. 1. RESTAURANTS  AND  HOSPITALITY
BUSINESSES MAY PERMIT TIP SHARING AND TIP POOLING AS DEFINED IN SUBDIVI-
SIONS ELEVEN AND TWELVE OF SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE
AMONG BACK-OF-THE-HOUSE EMPLOYEES PROVIDED THAT SUCH BUSINESSES PAY FOOD
SERVICE  WORKERS AND BACK-OF-THE-HOUSE EMPLOYEES NOT LESS THAN THE MINI-
MUM WAGE ESTABLISHED PURSUANT TO SUBDIVISION ONE OF SECTION SIX  HUNDRED
FIFTY-TWO OF THIS ARTICLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15061-01-6
              

A. 10175                            2

  2.  (A)  ANY RESTAURANT OR HOSPITALITY BUSINESS THAT CHOOSES TO PERMIT
TIP SHARING AND TIP POOLING AS AUTHORIZED IN THIS SECTION IS REQUIRED TO
INFORM THEIR EMPLOYEES OF SUCH POLICY  THROUGH  A  CONSPICUOUSLY  POSTED
NOTICE  OR  OTHER  EFFECTIVE  MEANS  OF  DISCLOSURE WITH AS MUCH ADVANCE
NOTICE AS POSSIBLE.
  (B)  IF  AT  ANY TIME SUCH BUSINESS THAT WAS PREVIOUSLY PERMITTING TIP
SHARING AND TIP POOLING AS AUTHORIZED IN THIS SECTION CEASES TO  DO  SO,
THAT  BUSINESS  IS  REQUIRED  TO  INFORM  THEIR EMPLOYEES OF SUCH ACTION
THROUGH A CONSPICUOUSLY  POSTED  NOTICE  OR  OTHER  EFFECTIVE  MEANS  OF
DISCLOSURE  AT  LEAST  SEVEN DAYS PRIOR TO IMPLEMENTING SUCH A POLICY OR
WITH AS MUCH ADVANCE NOTICE AS POSSIBLE.
  S 3. The commissioner of labor shall promulgate such rules  and  regu-
lations  necessary  for  the  purposes of carrying out the provisions of
this act.
  S 4. This act shall take effect January 1, 2017.