Tipped workers want a raise in New York

ALBANY, N.Y. (NEXSTAR) — State Senator Robert Jackson joined a coalition of advocates on Tuesday to unveil a report showing that almost 318,000 tipped restaurant workers in New York earn just 67% of the state minimum wage before tips. That's why they're sponsoring S415A/A1200A to guarantee minimum wage to tipped workers by 2029.

The "We Are Drowning" report, available at the bottom of this story, found that costs for food and rent rose 23% over the last five years. And the average tip is 19.3% of the bill, representing a six-year low. According to the report, pay for tipped workers ranges from $10.35 to $11 an hour before tips, compared with $15.50 to $16.50 per hour for other workers.

The report argues that, because they make about $18,625 a year, most tipped workers can't afford shelter, groceries, medicine, or gas. At a state capitol press conference on Tuesday in Albany, restaurant workers, small‑business owners, and advocates in the One Fair Wage coalition joined the legislators to highlight the findings report, call for change, and push for action.

“This bill puts tipped workers in food service on a path to receive the full minimum wage by 2029,” said Assemblymember Jessica González‑Rojas, the countarpart to Jackson who sponsors the bill in the Assembly.

Under the proposed S415A/A1200A, tipped food service and service employees in New York City and Nassau, Suffolk, and Westchester Counties would hit hourly pay of $12.77 per hour on Jan. 1, 2026. Then, it would go to $14.88 per hour on Jan. 1, 2027, and $17 on Jan. 1, 2028. Upstate payrolls would start at $11.50 in 2026 and climb to $14.50 in 2028. Starting in 2029, increases would follow the rate of inflation.

The bill would let employers share tips with non-managerial staff. It also defines “miscellaneous industry worker” to include car wash attendants, nail salon workers, tow truck drivers, dog groomers, tour guides, valet attendants, hairdressers, aestheticians, and golf and tennis instructors.

Higher base pay for those miscellaneous industry workers could mean diners lose the incentive to tip well. And rising rates could also drive up menu prices or shrink profit margins.

That's why the legislation also establishes a One Fair Wage tax credit. To help employers manage higher payroll expenses, it would let them get back $1.50 for each tipped hour in 2026. That credit would drop to $1.30 in 2027, $1.20 in 2028, $1.10 in 2029, and $1 in 2030. Businesses would claim the credit on state income tax returns.

Eight states and Washington, D.C., now require full cash wages for tipped workers, and advocates note their restaurant industries have grown without job losses. If lawmakers approve the bill this spring, the law would take effect January 1.

Take a look at the report below: