Permit Mandatory Gratuities

A. 9644 Goldfeder / S. 7477 Martins


A. 9644 Goldfeder / S. 7477 Martins

The New York State AFL-CIO, representing 2.5 million union workers and their families as well as our retirees and their families, supports the above-referenced legislation.

This legislation would permit hospitality employers to charge customers mandatory gratuities so long as the charge is disclosed before customers order and the entirety of the charge is passed along to workers.

Currently, New York State law provides for a sub-minimum wage for tipped workers.  As a result, for many in the hospitality industry, tips are vital to their income.  Given this circumstance, it is appropriate to give an employer the option to charge a mandatory gratuity.

Permitting mandatory gratuity charges is common sense.  Because tip amounts fluctuate significantly, workers who rely on tips for a significant portion of their earnings cannot effectively budget, save or plan for the future.  Further, many foreign tourists simply do not tip because often times, service charges are mandatory in other countries.  We should allow businesses to establish service charge policies that are in line with their customers’ expectations.  This change will result in hospitality workers earning a more consistent and fair wage.

Therefore, this Federation urges this bill be passed.

For further information, contact the Legislative Department at 518-436-8516.

Memo #39 A9644-S7477 Mandatory_Gratuitiesv2