As Minimum Wage Rises, More NY Restaurants Drop Tips for Surcharges

February 23, 2016

The surcharges offset increased labor costs.

Restaurants in New York may be feeling a pinch after the state raised its minimum wage for tipped workers at the end of last year. Governor Andrew Cuomo pushed through an increase from $5 to $7.50, and now, reports the Rochester Democrat & Chronicle, more restaurants are doing away with tipping in favor of surcharges to make up the cost.

A recent receipt from a restaurant in Geneva includes an “NYS Labor Surcharge” of $4.32 on a $91 tab. That follows a similar move by a brewpub in Glen Falls, which explicitly banned tipping and instituted a…