New Wage, Tip Rules Are on the Way for Restaurants

December 16, 2010 – In The News
The Wall Street Journal

The New York State Department of Labor this week filed a long-awaited wage order that establishes guidelines on workers’ tips and pay. As the guidelines were issued only two weeks before going into effect, restaurateurs are scrambling to update payroll systems and train employees.

“This is the definition of insanity,” said Carolyn Richmond. “The Department of Labor springs this on everyone on Dec. 15 and literally gives the industry two weeks to implement a minimum wage increase and other monumental procedural changes during the busiest time of the year.” Those in the restaurant industry have been waiting for the guidelines for more than a year in hopes of them clarifying some aspects of the system. According to Richmond, however, one clarification specifies that employees who work 10 or more hours a day must receive an extra hour’s pay, which could leave employers less willing to offer employees flexible work schedules.

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