NYSRA Makes 2025 Top Trade Associations List by City & State!

Federal Updates

📌 The Department of Treasury released guidance that allows certain workers to deduct up to $25,000 in “qualified tips” per year from 2025 through 2028. Restaurant occupations are widely eligible for the tax deduction on tipped income. The Treasury Department also illustrated how service charges and mandatory gratuities will not be eligible for the tax deduction. Revenue Ruling 2012-18 provides that the absence of any of the following factors creates a doubt as to whether a payment is a tip and indicates that the payment may be a service charge: (1) the payment must be made free from compulsion, (2) the customer must have the unrestricted right to determine the amount, (3) the payment should not be the subject of negotiation or dictated by employer policy, and (4) generally, the customer has the right to determine who receives the payment. Example (p. 48):

Example 3. Customer E dines at Restaurant X with a party of eight people. E’s bill for food and beverages for the party of eight includes a “recommended tip” equal to 18% of the price for food and beverages. However, there is a line for the customer to subtract (including to zero) or add to the recommended tip amount before paying the bill. Customer E subtracts 3% from the recommended tip amount resulting in a tip of 15% of the price for food and beverages. Customer E had a right to determine the additional amount, and he was expressly provided the option to disregard or modify the “recommended tip” amount. Under these circumstances, the recommended 18% mount is not a service charge. Rather, the 15% amount that the customer voluntarily paid without compulsion is a qualified tip for purposes of the deduction under section 224.

The National Restaurant Association will participate in the Treasury’s public hearing on October 23 and plans to comment on the proposal.

Please note that New York State law requires all “service charges” be given to the employees providing direct service to the guest.

State Updates

📌 The National Labor Relations Board is suing the state of New York over a recently approved law the agency says wrongfully supersedes federal law. The law in question authorizes the state Public Employment Relations Board to decide disputes between private employers and recognized employee organizations if the National Labor Relations Board is unable to resolve them in their own capacity. Gov. Kathy Hochul signed the legislation on Sept. 5. The NLRB said it holds exclusive jurisdiction over most of these types of disputes, and they should retain such power. 

📌 State Senate Majority Leader Andrea Stewart-Cousins says she's not ready for New York to scrap its independent redistricting body, or to shed the good-government ideals that led to its creation. But in a USA Today Network interview on Sept. 19, the Yonkers Democrat declared her support for amending the state constitution to pick up the gerrymandering gauntlet President Donald Trump has thrown down. New York, she said, can't unilaterally disarm itself in a race against Republican-led states to redraw U.S. House lines to vie for power in Washington.

Federal officers arrested 11 Democratic elected officials inside a federal building in Lower Manhattan on Thursday after the officials demanded access to cells used by the Immigration and Customs Enforcement agency to detain migrants. The officials, including Brad Lander, the city comptroller, and city and state lawmakers, were arrested after they showed up at 26 Federal Plaza and sought to inspect the 10th-floor holding cells, which are operated by ICE and closed to the public. The cells have drawn scrutiny following complaints of unsanitary and overcrowded conditions, leading a federal judge to order ICE to improve the conditions last month.

New York City Updates

📌 Rep. Hakeem Jeffries, the House Democratic Minority leader from Brooklyn, is in discussions to endorse lefty Democratic nominee Zohran Mamdani for mayor, sources said Sunday. “Both Hakeem and I have been in conversations with Mamdani and [adviser] Patrick Gaspard about a possible endorsement,” Rev. Al Sharpton told reporters. Gaspard, the former ambassador to South Africa and political director to ex-President Barack Obama, has emerged as key adviser to Mamdani with key constituencies and business leaders in the city, particularly in the black community.

📌 The chairman of the New York State Democratic Party said on Thursday that he would not support Zohran Mamdani, his party’s nominee for mayor of New York City, citing fundamental disagreements over Israel and democratic socialism. The position puts the chairman, Jay Jacobs, directly at odds with both Democratic primary voters and Gov. Kathy Hochul, his de facto boss, who endorsed Mr. Mamdani on Sunday despite her own differences with the nominee.

📌 Is your health permit up to date? A Food Service Establishment Permit, issued by the NYC Department of Health and Mental Hygiene (DOHMH), expires after one year. Check the expiration date on your permit. Renewal notices are sent out 3 months before the permit expires. Be sure DOHMH has your correct contact information to receive all official notices! If you are unsure, you should complete and submit this form or update your information when you renew your permit online. If you owe any outstanding fines imposed for Health Code Violations, you must pay them before your permit will be renewed. You must also provide proof of current Worker's Compensation and Disability Insurance coverage every time you renew. (NYSRA can help you with both!)

2025 First Place NY Winner: Hannah Horl, Ulster BOCES (Port Ewen, NY)

CALL FOR JUDGES

Support our ProStart Virtual Skills Challenges by being a judge!

The virtual competitions are open to current NY and VT ProStart (High School) students only.

This October we will once again hold a Pumpkin Carving Competition. Students will submit a presentation with photos of them creating their pumpkins as well as the final design. They will be judged on things like Title & Theme, Overall Creativity, Degree of Difficulty, and Presentation.

If you would like to volunteer to judge the Pumpkin Carving Contest, please email Elizabeth Fordley at Elizabeths@nysra.org by October 1.

LEARN MORE ABOUT THE PROSTART PROGRAM

Upcoming Leadership Roundtables

Each virtual Hospitality Leadership Roundtable features a monthly topic of discussion, and a town hall session for open conversation and Q&A.

NYC Hospitality Leadership Roundtable | Register

Monday, September 29 at 3:00 p.m.

Caterers Council | Register

Wednesday, October 1 at 11:00 a.m.

Hospitality Leadership Roundtable | Register

Tuesday, October 21 at 10:00 a.m.

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