NY State Senate Bill 2025-S5176

Senate Bill S5176

2025-2026 Legislative Session

Relates to establishing when a tip credit applies to employees working at tipped and non-tipped occupations on the same day

download bill text pdf

Current Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 19, 2025	referred to labor

2025-S5176 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Add §652-a, Lab L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8709
2021-2022: S4175
2023-2024: S8200

2025-S5176 (ACTIVE) - Summary

Establishes when a tip credit applies to employees working at tipped and non-tipped occupations on the same day.

2025-S5176 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5176

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the labor law, in relation to establishing when a tip
credit applies to employees working at tipped and non-tipped occupations
on the same day

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow a New York restaurant employee greater flexibility to work in a
tipped and non-tipped capacity in the same shift.

 
SUMMARY OF PROVISIONS:

Section 1 allows employees to work in a tipped and non-tipped occupation
on the same day, so long as the employer does not take the tip credit
for the time worked in the non-tipped capacity, if it exceeds twenty
percent of a worker's shift; the legislation further states that should
an error be made in taking the tip credit, the employer shall be liable
to the employee for whom the credit was improperly taken.

 
JUSTIFICATION:

The 80/20 rule creates operating challenges for employers while limiting
income and growth opportunity for employees. With the State opening more
and more each month, restaurants are going to be required to reopen with
significant new safety measures and protocols, which will require an
unprecedented level of flexibility for employees. Unfortunately, the
80/20 rule limits what additional work a tipped, front of the house
employee can do - thereby limiting opportunities for additional income
or shifts.

Reforming this rule will allow flexibility for employees without the
risk of permanently shutting down a business, hurting the local economy,
and eliminating service jobs permanently.

 
PRIOR LEGISLATIVE HISTORY:

2024: S8200 Comrie/ A3041 Pheffer Amato

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

N/A

 
EFFECTIVE DATE:
Immediate.

2025-S5176 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5176
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 19, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to establishing  when  a  tip
   credit  applies  to employees working at tipped and non-tipped occupa-
   tions on the same day

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The labor law is amended by adding a new section 652-a to
 read as follows:
   § 652-A. WORKING AT TIPPED AND NON-TIPPED OCCUPATIONS ON THE SAME DAY.
 ON ANY DAY THAT A SERVICE EMPLOYEE OR FOOD SERVICE  WORKER  WORKS  AT  A
 NON-TIPPED  OCCUPATION  FOR MORE THAN TWENTY PERCENT OF THEIR SHIFT, THE
 WAGES OF SUCH EMPLOYEE SHALL BE SUBJECT TO NO TIP CREDIT  FOR  THE  TIME
 WORKING  AT  THE  NON-TIPPED  OCCUPATION DURING THAT DAY. A FOOD SERVICE
 WORKER'S CUSTOMARY SIDE WORK THAT IS ANCILLARY TO THEIR  OCCUPATION  AND
 WHICH  IS  REGULARLY  AND CUSTOMARILY PERFORMED AS PART OF THEIR REGULAR
 JOB DUTIES SHALL NOT BE CONSIDERED WORK AT A NON-TIPPED  OCCUPATION.  IF
 AN  EMPLOYEE  FOR WHOM AN EMPLOYER IMPROPERLY TAKES A TIP CREDIT PARTIC-
 IPATES IN A TIP POOL WITH EMPLOYEES FOR WHOM A TIP  CREDIT  IS  PROPERLY
 TAKEN,  THE  EMPLOYER  SHALL ONLY BE LIABLE TO THE EMPLOYEE FOR WHOM THE
 TIP CREDIT WAS IMPROPERLY TAKEN.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06059-01-5

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