RECLAIM NEW YORK INITIATIVE SUPPORTS THE MINIMUM WAGE TIP CREDIT

Statement from Reclaim New York Initiative Executive Director Brandon Muir:

“It’s not easy getting employees and employers to agree on labor issues. But the wage tip credit is one where they find common ground, and for good reasons. Governor Cuomo has proposed ending this credit – a decision that would force businesses to shoulder more costs and shrink wages for workers. Restaurant owners and employees overwhelmingly oppose ending the credit. Now Reclaim New York Initiative calls on the Department of Labor to reject the Governor’s misguided proposal.

“Ending the minimum wage tip credit will take money out of servers’ pockets and force struggling businesses to close their doors. Tipped workers are already guaranteed to earn at least minimum wage. Any argument for economic justice by ending the credit is insincere because it will ultimately suppress wages. Restaurant owners would also be faced with additional personnel costs if the credit was eliminated. Businesses will be forced to cut staff and resort to increased automation to keep their doors open.

“The real minimum wage is $0. There is no wage, healthcare, parental leave, sick leave, or family leave for those who don’t have a job. If neither the employees nor the employers profit from ending the minimum wage tip credit, who benefits?”