New wage and tip rules require New York restaurants and hotels to change their payroll practices

The New York Department of Labor issued a new wage order that raises minimum wages for tipped hospitality industry workers and clarifies that hospitality industry employers may mandate tip pooling. This new wage order is effective 1 January 2011, though employers will have until 28 February 2011 to make the necessary changes in their payroll and recordkeeping systems. Despite this grace period, it is advisable for restaurants to begin implementing changes immediately to comply with this new wage order, as employers must pay workers wages retroactively to 1 January 2011. The most important wage and tip rule changes required by the order are highlighted below.

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