New Tipping Law In New York State?

A new tipping law in other parts of the country has New Yorkers wondering if it will soon become a law in the Empire State.

The new law just went into effect in Minnesota.

Will Minnesota Tipping Law Come To New York?

As of August 1, 2024, the swipe fee for using a credit or debit card won't impact workers.

"Effective Aug. 1, 2024, and as part of the labor and industry policy law, gratuities received by an employee through a debit, charge, credit card, or electronic payment must be credited to the pay period in which they are received by the employee and paid out in the next scheduled pay period," the new Minnesota law states.

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Law Does Not Apply In New York State

I had no idea, but currently across New York State, if you pay for your bill using a credit or debit card and add a tip, the restaurant or bar could take out a swipe fee out of the worker's tip.

The law in New York allows employers to deduct a small percentage to cover credit card processing fees.

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"When tips are given by customers via credit card, the employer must pay the employee the amount due no later than the next regularly scheduled pay day. The employer may subtract from the employee's tips the pro-rated share of the charge levied by the credit card company," the New York State Department of Labor states.

Example Of What's Deducted

If a credit card company charges a 5 percent fee and the bill is $120 with a $20 tip, the worker receives a $19 tip.

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Do you think New York State should adopt the Minnesota tipping law?

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