Labor Law
New York City Compliance Reminder: NYC Tip Credit & Spread-of-Hours Pay
Panko Compliance · July 16, 2026
New York's Hospitality Industry Wage Order (12 NYCRR §146) governs how restaurants pay tipped employees. It sets the cash wage floor, defines who can share in a tip pool, requires a specific written notice before you take a tip credit, and adds a 'spread of hours' premium when an employee's workday — from first clock-in to last clock-out — exceeds 10 hours. Penalties: Failure to provide written tip credit notice: lose the entire tip credit retroactively. You owe the full minimum wage for every hour worked since the failure, with 100% liquidated damages. Full compliance guide: alerts.getpanko.app/compliance/nyc/tip-credit-and-spread-of-hours
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