S T A T E O F N E W Y O R K
________________________________________________________________________
266
2019-2020 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 9, 2019
___________
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.
§ 2. The labor law is amended by adding a new section 652-a to read as
follows:
§ 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03118-01-9
A. 266 2
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.
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.
§ 3. The commissioner of labor shall promulgate such rules and regu-
lations necessary for the purposes of carrying out the provisions of
this act.
§ 4. This act shall take effect January 1, 2021.