The current base wage of NYC restaurant servers is $5 an hour and whatever tips the server makes on top of that. Not every shift is going to be a busy one, so by law if an employee's tips are added to the base pay and the sum is lower than minimum wage, the employer has to pay the difference.
However, due to a well-organized campaign to eliminate the tip credit system, restaurants labor costs maybe getting much more expensive. If the servers are going to be paid a base pay of at least minimum wage, this will double labor costs. Restaurants are going to have to limit their staff and perhaps eliminate tipping all together by adding automatic administrative fee to checks. Read More