New York State Legislature considering bill that would require restaurants to pay servers minimum wage
NEW YORK -- Restaurant owners in New York City say a proposed state bill to raise the minimum wage for servers would mean higher costs to the customer and potential layoffs.
Paul D'Amore has been a bartender at Gallagher's Steakhouse in Midtown, Manhattan ever since he left his real estate job over a decade ago.
"The harder I worked, the more I did, the more I made, it's kind of the same here," D'Amore said Monday.
Most of what he makes comes from tips.
"I'd say probably 75% to 80% is tips," D'Amore said.
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Currently, the minimum wage in New York City is $16 per hour, but the sub-minimum wage for tip workers -- that's bartenders and waiters -- is less than $11 per hour. The assumption is they make up that difference with tips.
"Women of color are tipped much less than white men and it's very unjust and unfair," Assembly member Jessica Gonzalez-Rojas said.
A new bill being considered in the state Legislature would require restaurants pay their servers minimum wage.
"We want to make sure folks can still take home that extra cash but their paychecks are able to provide a livable wage," Gonzalez-Rojas said.
Servers could still be tipped, but some fear customers wouldn't dish out the extra dough.
"It would cost about $12,000 more per year to employ each full-time tipped employee," said Andrew Rigie, executive director of the NYC Hospitality Alliance.
In a new survey from the Hospitality Alliance, 76% of restaurant owners said they would increase menu prices if the bill went through, with 42% saying they would consider eliminating tipping altogether to keep costs down.
"We could see more restaurants close. We would see more restaurants reducing employee count, some restaurants shuttering," Rigie said.
As for D'Amore, "I'd go back to real estate, where I worked on commission."
If the bill passes, there would be a five-year phase-in period to give restaurants and customers time to adjust.
