New York Tip Pooling Laws (2026)
New York lets restaurants require tip pools, but only food service workers who personally serve guests, such as servers, bussers, bartenders, runners and hosts, can receive from them. Cooks and dishwashers are excluded even when they are paid the full minimum wage, which is stricter than federal law. In 2026 the food service cash wage is $11.35 in New York City, Long Island and Westchester and $10.70 in the rest of the state.
Last reviewed October 11, 2026.
At a glance
| Minimum wage | $17.00 in New York City, Long Island and Westchester; $16.00 elsewhere (no change on January 1, 2027) |
|---|---|
| Food service workers | $11.35 cash wage downstate, $10.70 upstate |
| Service employees | $14.15 cash wage downstate, $13.30 upstate |
| Fast food | No tip credit |
| Required tip pools | Food service workers only |
| Back-of-house in a pool | Not allowed |
| Managers | Not with meaningful authority over staff |
| Card fees taken from tips | Pro-rated share allowed |
Tip credit and minimum wage
Only hospitality employers may take a tip credit in New York. In 2026 the minimum wage is $17.00 an hour in New York City, Long Island and Westchester and $16.00 elsewhere, and the state Department of Labor says it stays the same on January 1, 2027. Food service workers can be paid a cash wage of $11.35 downstate or $10.70 upstate, with tips making up the rest of the minimum (12 NYCRR 146-1.3). Service employees outside food service have a smaller credit, and fast food employees get no tip credit at all.
New York keeps its own side-work rule: no tip credit for a day on which the employee spends two hours or more, or more than 20 percent of the shift, on non-tipped work (146-2.9).
Who can share in a tip pool
An employer may require food service workers to join a tip pool and may set the percentage for each occupation, but only food service workers may receive from the pool (146-2.16). Eligibility depends on duties, not titles: employees must give, or help give, personal service to patrons as a principal and regular part of the job. The rules name wait staff, counter staff who serve food or drinks, bussers, bartenders, service bartenders, barbacks, food runners, captains who serve food and hosts who greet and seat guests (146-2.14).
Cooks and dishwashers do not qualify, and paying them the full minimum wage does not change that. An employer also may not require employees to share more than is customary and reasonable.
Managers
No employer or agent may demand or accept any part of employees’ gratuities (Labor Law § 196-d). New York’s highest court drew the line for managers at meaningful or significant authority over other employees, such as discipline, hiring and firing or input into schedules (Barenboim v. Starbucks, 2013).
Credit card tips
An employer may deduct the employee’s pro-rated share of the card company’s fee for processing the tip, and must pay the rest no later than the next regular payday (146-2.20).
Service charges
A charge that a customer would reasonably take as a gratuity, including one called “service” or “food service”, is presumed to be a gratuity and must be paid in full to the staff who provided the service (146-2.18). Administrative charges for banquets and special events must be clearly identified as not a gratuity in the contract and on menus and bills, in at least 12-point type (146-2.19).
Records and notice
Before employment starts, the employer must give written notice of the tip credit in English and the employee’s primary language and keep a signed acknowledgment for six years (146-2.2). A tip pool needs a daily log of tips collected on each shift, the list of eligible occupations, the shares and what each employee received, kept for six years and available to participants (146-2.17).
New York tip pooling FAQ
Can cooks share tips in New York?
Not from a tip pool. Only food service workers who personally serve patrons may receive from a required pool, so cooks and dishwashers are excluded even when they are paid the full minimum wage.
What is the tipped minimum wage in New York in 2026?
$11.35 an hour for food service workers in New York City, Long Island and Westchester and $10.70 in the rest of the state. Tips must make up the rest of the $17.00 or $16.00 minimum; if they fall short, the employer pays the difference.
Can a New York employer take credit card fees out of tips?
Only the employee’s pro-rated share of the processing fee charged on the tip.
Is a service charge a tip in New York?
Usually. A charge a customer would reasonably take as a gratuity, including one called “service”, must go in full to the staff who served. Banquet and event administrative charges can be kept only if clearly disclosed as not a gratuity.
Official sources
- New York Labor Law § 652
- New York Labor Law § 196-d
- NY DOL: Minimum wage
- Hospitality Industry Wage Order, 12 NYCRR Part 146
- NY DOL: Hospitality wage rates (P717)
- NY DOL: Tips and gratuities FAQ
- Barenboim v. Starbucks Corp. (2013)
This page summarizes the law for restaurant operators and staff; it is not legal advice. Wages and rules change, and cities can set their own minimums. Check the linked official sources, or ask an employment lawyer, before changing how you handle tips.