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Paid Vacation & Tip Credit

By The NYC Hospitality Alliance

Last week we were very busy ensuring that elected officials and the public heard the voices and perspectives of members of the NYC Hospitality Alliance!

We released our Increasing Labor Cost Report that was widely covered in the press and caught the attention of elected officials throughout the state of New York.  The report includes data such as; 74.50% of respondents report that they will reduce employees hours, and 47.10% will eliminate jobs as a result of mandated wage increases that took effect December 31, 2018.  Crain's New York published a story titled, Survey suggests restaurants will cut jobs to offset minimum-wage hike where the NYC Hospitality Alliance was quoted saying, "We think the results of this survey make it crystal clear that the restaurant industry tip credit must stay." 
 
Our report sends a strong message to Governor Cuomo to keep the Tip Credit, but the timing of its release also catapulted the NYC Hospitality Alliance into the middle of Mayor De Blasio's announcement that he'll push legislation mandating businesses with 5 or more employees to offer workers two weeks paid vacation time. In response, the NYC Hospitality Alliance issued the following statement and appeared widely in the press explaining the financial and operational challenges this proposal would pose on city restaurants and bars.
 
"Workers in New York City already earn up to a week of paid time off via the paid sick leave law. And, while giving an additional two weeks paid vacation sounds like a nice idea, it has a significant cost for businesses, especially at a time when vacant storefronts plague our city streets and employment growth at city restaurants has gone flat, due in large part to other government mandates." 
 
 
Click here to watch a video clip of The Alliance's executive director, Andrew Rigie on NY1's Inside City Hall discussing the proposals and its impact on the hospitality industry
 
The NYC Hospitality Alliance will also deliver a Save the Tip Credit package to the Governor and members of the State Legislature. The package includes an executive summary of our labor cost reportfact sheet that provides reasons why it's so important to keep the tip credit, op-eds from employers and employees, and more info to ensure they understand the importance of the tip credit to hospitality businesses. Both the tip credit and paid vacation are pending issues that we're on the front lines of, and we'll keep you updated as they progress.
 
You should also call or email your elected representatives in the State Assembly and Senate explaining to them why the tip credit is important to your business and jobs. Urge them to urge Governor Cuomo to not eliminate the tip credit. 
 
 
Here's a sample of NYC Hospitality Alliance's Press Clippings from Last Week.
 
The Wall Street Journal
 
Eater NY
 
ABC Eyewitness News
 
Crain's NY
 
Inside City Hall, NY1 
 
Yahoo News
 
Patch
 
HR Drive
 

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