N.Y. Comp. Codes R. & Regs. Tit. 12 §§ 146-2.18

Current through Register Vol. 46, No. 45, November 2, 2024

Section 146-2.18 - Charge purported to be a gratuity or tip

Section 196-d of the New York State Labor Law prohibits employers from demanding, accepting, or retaining, directly or indirectly, any part of an employee's gratuity or any charge purported to be a gratuity.

(a) A charge purported to be a gratuity must be distributed in full as gratuities to the service employees or food service workers who provided the service.

(b) There shall be a rebuttable presumption that any charge in addition to charges for food, beverage, lodging, and other specified materials or services, including but not limited to any charge for "service" or "food service," is a charge purported to be a gratuity.

(c) Employers who make charges purported to be gratuities must establish, maintain and preserve for at least six years records of such charges and their dispositions.

(d) Such records must be regularly made available for participants in the tip sharing or tip pooling systems to review.

N.Y. Comp. Codes R. & Regs. Tit. 12 §§ 146-2.18

Amended New York State Register December 28, 2016/Volume XXXVIII, Issue 52, eff. 12/31/2016