Practices within the food services industry have always given rise to a great deal of controversy—especially the wages paid to tipped employees, and the rights of those employees with regard to sharing and pooling their tips. The ambiguities of the New York State Labor Law led to a plethora of lawsuits, and as a result, New York has now attempted to clarify and modify many of these issues.
The New York State Hospitality Industry Wage Order took effect on Jan. 1, 2011, and makes various changes to many practices in the food services industry. Employers were given an implementation period until March 1, 2011, to reflect these revisions in their payroll system; however, employers utilizing this period were required to retroactively pay the additional wages provided by the revised regulations.
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