Tipped Over: Employer Liability in a Two-Tiered Wage State

Restaurant Opportunities Centers United


As the country moves toward establishing a minimum wage of $15 per hour, two paths have emerged: that followed by California, in which all workers are on a single track to earn a basic minimum wage of $15 per hour;1 and a second path exemplified by New York, which passed $15 minimum wage legislation, but reaffirmed a two-tiered wage system in which tipped workers continue to be left behind. This report documents restaurant employers’ experiences of costly liability arising from the complicated rules surrounding paying tipped workers a lower minimum wage.

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