New York tip pooling laws & tipped minimum wage
In New York, employers can pay tipped workers $10.65/hr as long as tips bring them to the $16.00 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $16.00/hr |
| Minimum cash wage for tipped workers | $10.65/hr |
| Maximum tip credit | $5.35/hr |
| Tips belong to | Employees — always |
Rates reviewed June 2026. Rates change — confirm with the New York labor department. Not legal advice.
What's specific to New York
New York rates vary by region and role. Rest-of-state: $16.00 minimum / $10.65 cash wage for food service workers. NYC, Long Island & Westchester: $17.00 minimum / $11.35 cash wage. Food service workers must get a cash wage of at least two-thirds of the minimum. Service employees (e.g., hotel workers) have different rates.
Tip pooling in New York
New York follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $10.65/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Two federal rules apply no matter what: managers and supervisors can never take from a tip pool, and credit card processing fees can only be deducted from tips where state law allows it .
What this means for your tip-out
Because part of your legal wage in New York comes from tips, every dollar you tip out matters — your employer's tip credit assumes those tips reached you. Track what you actually keep. Use our tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
New York tip law FAQs
What is the tipped minimum wage in New York?
Employers in New York may pay tipped employees a cash wage of $10.65/hr and claim a tip credit of up to $5.35/hr toward the $16.00 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in New York?
New York follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $10.65/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a cut of the tip pool in New York?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including New York. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).