New York tip pooling laws & tipped minimum wage
In New York, employers can pay tipped workers $10.70/hr as long as tips bring them to the $16.00 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $16.00/hr |
| Minimum cash wage for tipped workers | $10.70/hr |
| Maximum tip credit | $5.30/hr |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the New York labor department. Not legal advice.
What's specific to New York
New York rates vary by region and role. Rest-of-state: $16.00 minimum / $10.70 cash wage for food service workers. NYC, Long Island & Westchester: $17.00 minimum / $11.35 cash wage. Food service workers must get a cash wage of at least two-thirds of the minimum. Service employees (e.g., hotel workers) have different rates.
New York splits its tipped rates by region and by job
New York sets different tipped rates depending on where you work and what you do. In New York City, Long Island, and Westchester County the minimum wage is $17.00 an hour; in the rest of the state it is $16.00. Both figures rose on January 1, 2026, and both are scheduled to keep rising.
Your job category matters too. Food service workers — servers, bartenders, and others who regularly receive tips in a restaurant — have one set of rates. Service employees, such as hotel or other hospitality staff, have separate, higher cash wages.
Food service cash wage is set at two-thirds of the minimum
Under New York’s Hospitality Industry Wage Order, a food service worker’s cash wage is set at roughly two-thirds of the minimum wage, with the rest made up by a tip credit. In New York City, Long Island, and Westchester the food service cash wage is $11.35, with a tip credit of $5.65 to reach $17.00. In the rest of the state the cash wage is $10.70, with a tip credit of $5.30 to reach $16.00.
Service employees are paid more in cash. In the higher-wage region their cash wage is $14.15 with a $2.85 tip credit; in the rest of the state it is $13.30 with a $2.70 tip credit.
If tips do not reach the full minimum, your employer owes the rest
The tip credit is only allowed if your tips actually bring you to the full minimum wage for your region — $17.00 or $16.00 an hour. In any week they do not, your employer must pay the difference. Your employer also has to give you proper written notice before taking a tip credit at all. If you were paid below what you were owed, you can file a claim with the New York State Department of Labor.
Tip pooling in New York
New York follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $10.70/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it.
What this means for your tip-out
Because part of your legal wage in New York comes from tips, the employer's tip credit assumes those tips reached you. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
New York tip law FAQs
What is the tipped minimum wage in New York?
Employers in New York may pay tipped employees a cash wage of $10.70/hr and claim a tip credit of up to $5.30/hr toward the $16.00 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in New York?
New York follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $10.70/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in New York?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including New York. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
How is the food service cash wage in New York calculated?
New York’s Hospitality Industry Wage Order sets the food service cash wage at roughly two-thirds of the minimum wage, with the remaining third covered by a tip credit. For 2026 that is $11.35 in New York City, Long Island, and Westchester, and $10.70 in the rest of the state.
Are hotel workers paid the same tipped rate as restaurant servers?
No. Restaurant food service workers and hotel-type service employees have separate rates. Service employees receive a higher cash wage — $14.15 in the higher-wage region and $13.30 in the rest of the state for 2026 — with a smaller tip credit.