New York City Bill Aims to Raise Minimum Wages, End Tip Credits
On March 10, 2026, the New York City Council introduced Bill Int. No. 757. The proposal would set a city minimum wage above the state rate.
The measure would phase in higher pay beginning in 2027. It also lays out a path to phase out tip credits.
Proposed wage schedule
The increases would apply to all private employers operating in New York City. Different schedules apply for large and small employers.
| Employer size | Jan 1, 2027 | Jan 1, 2028 | Jan 1, 2029 | Jan 1, 2030 | Jan 1, 2031 | Annual after |
|---|---|---|---|---|---|---|
| Large (>500 employees nationwide) | $20.00 | $23.00 | $26.00 | $30.00 | Inflation-based increase begins | Annual CPI adjustments from 2031 |
| Small (≤500 employees nationwide) | $19.00 | $21.50 | $24.00 | $27.00 | $29.00 | Annual CPI adjustments from 2032 |
Relation to state minimums
The proposed city rates would be separate from New York State wages. The current state minimum for New York City is $17.00 per hour.
Starting January 1, 2027, New York State will tie its minimum wage increases to inflation. The state will use the Northeast Region CPI and announce 2027 adjustments by October 1, 2026.
Tip credit phase-out for food service workers
The bill targets food service workers who regularly receive tips. Eligible workers include those primarily engaged in serving food or beverages.
Initially, tipped food service workers would receive a cash wage equal to two-thirds of the applicable minimum. Employers could rely on tips to make up the remainder to meet the full minimum.
Beginning January 1, 2032, the required cash wage would rise by $1.50 per year. This increase would continue until the cash wage equals the standard minimum.
Once parity is reached, employers could no longer apply a tip credit. The proposal therefore creates a phased end to the tipped wage system.
Enforcement, protections, and penalties
The Department of Consumer and Worker Protection would administer enforcement. The bill creates both administrative remedies and a private right of action.
- Strong anti-retaliation protections, with presumptions favoring workers.
- Recordkeeping rules requiring six-year retention of wage records.
- Presumptions against employers who fail to produce required notices or payroll records.
- Remedies including back wages, liquidated damages equal to two times unpaid wages, daily fines, and civil penalties.
Private plaintiffs could recover unpaid wages, liquidated damages, and attorney’s fees. Lawsuits would be allowed within six years of an alleged violation.
Reporting and outreach
The bill calls for annual public reports on complaints and enforcement outcomes. It also funds education and outreach with community organizations.
Legal status and potential challenges
As of this article, the measure has not been signed into law. If enacted, it could face a legal challenge on preemption grounds.
Longstanding New York case law found that state labor law can preempt local minimum wage rules. Observers cite Wholesale Laundry Bd. of Trade v. City of New York (1962, affirmed 1963) as precedent.
Supporters argue the New York City Bill seeks to raise minimum wages and end tip credits across the city. Filmogaz.com will monitor developments and report further updates.
