Top NYC Restaurateurs Back Reopening Plan With Focus on Eliminating the Tipped Minimum Wage

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Top NYC Restaurateurs Back Reopening Plan With Focus on Eliminating the Tipped Minimum Wage
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Top NYC restaurateurs back reopening plan with focus on eliminating the tipped minimum wage (Via EaterNY)

As NYC restaurants navigate a labyrinth of reopening guidelines while eyeing dwindling federal aid and the end of the state’s emergency eviction moratorium, some in the industry are taking action by proposing their own long-term restaurant reopening plan — one that puts the industry’s ongoing issues with wage inequality at the forefront.

Nearly 50 NYC restaurant owners, including well-known restaurateurs Danny Meyer of Union Square Hospitality Group, David Chang of Momofuku, and Tom Colicchio of Crafted Hospitality, are pledging their support of a new “Safe and Just Reopening” plan for restaurants, developed in partnership with One Fair Wage, a non-profit organization that has long advocated for the elimination of the tipped minimum wage in the industry.

The four-part plan calls for the elimination of the tip credit for restaurants in the state, a labor law that allows owners to pay tipped workers a base minimum wage of $10 per hour plus tips while NYC’s regular minimum wage is $15 an hour. Simultaneously, the plan calls for state legislators to allow tips to be shared equally across a restaurant’s entire staff, another measure that is not allowed under current labor laws for tipped workers.

The plan also demands for payroll tax relief and the ability for restaurant owners who agree to phase out the tipped minimum wage to add a 5 percent “safe reopening” surcharge to customers’ checks. Under the proposed plan, owners would have five years to phase out the tipped minimum wage at their restaurants if they are currently using it, says One Fair Wage president Saru Jayaraman.

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