Client Alert 

February 5, 2024



New York legislators are once again discussing eliminating the tip credit in the hospitality industry. Such legislation would deprive restaurateurs of the ability to offset tipped employee wages with the tips they receive from guests at a time when the industry is facing increased operating costs, increasing legal obligations, and unprecedented levels of unionization efforts.


Such legislation has gained momentum across the country recently and the effects have been detrimental to both restaurateurs and their employees. Notably, in areas where the tip credit has been eliminated, or elimination has been proposed, such as Maine and Washington D.C., employees have often opposed such legislation as it has been shown to result in less tips and job elimination due to increased prices for guests and increased expenses to restaurateurs.


If you have not already done so, we urge you to contact the industry groups to which you belong and ask what they are doing, and what you can do to help, to defeat this potential legislation.


EGS has joined with the NYS Restaurant Association in opposing this bill in the past and we are doing so again. We are asking you to take part in the grassroots campaign organized by the NYSRA (your business does not need to be a restaurant) so you can let your elected officials know how problematic this is—click the link below to have your voice heard:

Take Action Now

 *           *           *


If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.

This memorandum is published solely for the informational interest of friends and clients of Ellenoff Grossman & Schole LLP and should in no way be relied upon or construed as legal advice.