MONEY MATTER
Officials, workers say state should keep tip credit
SARATOGA SPRINGS, N.Y. » Saratoga County elected officials joined with local restaurant workers and owners on Thursday in voicing their opinions against the proposed elimination of the New York state tip credit.
This proposal, presented by Governor Andrew Cuomo in his 2018 State of the State address, directed the Commissioner of Labor to schedule public hearings to examine industries and evaluate the possibility of ending minimum wage tip credits, with an eye toward replacing tipping with an increased minimum wage.
“This is, plainly put, a bad idea all around,” said Senator Jim Tedisco (R,C,I,REF-Glenville), as echoed by his colleagues during a press conference Thursday morning at Longfellows in Saratoga Springs.
Senator Kathleen Marchione (R,C,I,Reform-Halfmoon) called it “a misguided plan” and “a classic example of Albany trying to micromanage.”
Assemblywoman Mary Beth Walsh (R,C,I, REFBallston) asked “Why don’t we not make a mistake like this,” referring to the recent failure and retraction of a no tip credit policy in Maine.
The officials warned of some potential outcomes of tip credit elimination, such as business closures, job losses, menu price increases and hurting the local economy.
Each of the officials said that no one has contacted their offices in favor of this proposed policy change.
On the other hand, many restaurateurs and their employees from Saratoga Springs and around the county have spoken out against the tip credit termination, as they believe they would make less money if the new policy was instated.
Amanda Broderick, a server at longtime Saratoga Springs restaurant the Olde Bryan Inn, has been working in the restaurant industry since she was 15 years old, with the philosophy that “The harder I work, the more money I take home,” she shared at Thursday’s event. This has afforded her the opportunity to pay her own college bills, live in an apartment, pay multiple car payments and most recently build a house with her husband. “If the tip credit is taken away, my life will drastically change,” she said. “I will no longer be able to afford the lifestyle that I’ve been accustomed to for the last 16 years. The debt I’ve accumulated will nearly be impossible to pay. For the first time in my career, I will be forced to ask for help.” Broderick added that she is scared for her friends and family who are in the same profession.
Those employees like Broderick who oppose the proposed elimination of the New York state tip credit are encouraged to attend the upcoming public hearing at 10 a.m. on Friday, May 18 at the Legislative Office Building in Albany. This event is part of a series of hearings around New York state that begins next week.
Anyone interested in attended a public hearing can register for it online at www.labor.ny.gov/workerprotection/laborstandards/ subminimumwage.shtm.
New York State Restaurant Association CEO Melissa Fleischut, who was also at Thursday’s conference, said the Spa City restaurant community has been particularly active in the fight against this possible statewide policy. “It’s been very strong. I’m very pleased with the response here,” said Fleischut, whose organization is based in Albany. “They are obviously a very tight knit community for the restaurant industry and they’ve done a great job spreading the word and explaining to anybody who will listen what the concerns are for the industry.”