New York restaurant owners have a tip for lawmakers: don’t change the rules about wait staff gratuity.
A whopping 95% of restaurateurs oppose a legislative campaign to eliminate the tip credit system that allows owners to pay wait staff who earn tips less than minimum wage, according to a new survey by the NYC Hospitality Alliance set to be released Monday.
Some owners said the change could lead to higher menu prices, staff layoffs — and could even threaten their businesses very existence.
“It’s clear New York’s restaurants and bars rely upon the tip credit,” said Andrew Rigie, executive director of the NYC Hospitality Alliance.
“There’s no reason for the state’s elected officials to upend the working model of New York’s restaurant industry and put small businesses and jobs on the chopping block, while making it much more expensive for New Yorkers and visitors to dine out in the Empire State,” Rigie said.
The survey or 879 restaurants, conducted in December, found that 97% of restaurants were extremely or somewhat concerned about eliminating the tip credit, with 88% saying it would be a disaster for their business.