Restaurants Rap State on Tipping Rules

September 24, 2010 – In The News
The Wall Street Journal

New York state laws governing restaurant guidelines on workers’ tips and pay is long overdue for an overhaul, which many feel is the reason there has been an increase in lawsuits alleging unfair wage practices. For more than year, recommended changes that would revamp the hospitality industry for the state have been left to the wayside, leading to frustration within the industry.

"We expected the proposal at least six or seven months ago," said Carolyn Richmond.

"Unfortunately, while Albany ruminated the plaintiffs bar was further emboldened by the uncertainty and as a result, lawsuits against the industry have increased dramatically. Right now, it is like waiting for the Oscar nominations—you largely know what to expect…but we are waiting," she said.

Recently, the state Labor Department said the new wage order will be sent for publication in the State Register within the next few weeks, followed by a 45-day comment period before final implementation. However, there is still the possibility for revisions that could further delay the process.

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