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Tip Credit Remains & Lien Bill Vetoed

By NYC Hospitality Alliance

The NYC Hospitality Alliance helped lead the fight in two critically important issues over the past couple of years. First, the hospitality industry Tip Credit will remain in effect. Second, the Lien Bill was vetoed by Governor Cuomo.

The NYC Hospitality Alliance helped lead the fight in two critically important issues over the past couple of years. Today, we're writing to provide you with important updates....and, great news to start the new year. First, the hospitality industry Tip Credit will remain in effect. Second, the Lien Bill was vetoed by Governor Cuomo. You can read about both issues below. Thank you to all our members for their support and participation in both matters that are so important to restaurants and nightlife establishments in NYC. And, thank you to Governor Cuomo and the Department of Labor for carefully considering these important issues.
 
TIP CREDIT NEWS
 
The NYS Department of Labor released its Report and Recommendations to Governor Cuomo that resulted from the "Tip Credit" hearings held around the state, which the NYC Hospitality Alliance, our members, and many others participated in. The Report and Recommendations leaves the "Tip Credit" in effect for businesses covered by the Hospitality Wage Order, which covers restaurant and nightlife workers.
 
In response to the report, Governor Cuomo announced he will follow its recommendations and eliminate the Tip Credit for businesses covered by the Wage Order for Miscellaneous Industries and Occupations, which covers nail salon workers, car wash workers, and other occupations where tipping is not always expected, but leave the Tip Credit for restaurant and nightlife workers unchanged.
 
The NYC Hospitality Alliance was grateful for the opportunity to make our case during the public hearing process and we are very pleased that this recommendation reinforces the fact that the hospitality industry, which provides positive economic opportunities and advancement for hundreds of thousands of New Yorkers is fundamentally different than these other industries. We will, of course, stay engaged in this critical issue and we thank all our members and tipped workers who participated and had their voices heard during the public hearing process.
 
LIEN BILL VETOED
 
Last year, we informed you that the NYS Legislature passed legislation allowing a business and personal lien to be placed on the owners, top 10 investors, and managers of a business based solely on the accusation of a wage violation.
 
The NYC Hospitality Alliance was able to secure important changes to the legislation before its inevitable passage, due to the state Senate's willingness to work with us, even though we held disparate positions on the legislation.
 
You'll be very happy to learn that due to our outstanding concerns, along with those of the greater business community, Governor Cuomo has vetoed the Lien Bill and it will NOT become law.
 
We thank all of our members for being engaged in this issue that concerned you so deeply, and we're glad to report that the Governor heard your legitimate concerns and vetoed this legislation.
 
We, nonetheless, recognize the serious problem that is wage theft and remain committed to working with the Governor, State Legislature and advocates to address the issue. We, however, believe this legislation was misguided and posed serious consequences for the restaurant and nightlife industry and we thank Governor Cuomo for recognizing its significant implications.

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