June 26, 2018 The Honorable Andrew M. Cuomo Governor of New York State NYS Capitol Building Albany, NY 12224
June 26, 2018 The Honorable Andrew M. Cuomo Governor of New York State NYS Capitol Building Albany, NY 12224
June 26, 2018 The Honorable Andrew M. Cuomo Governor of New York State NYS Capitol Building Albany, NY 12224
We, the undersigned restaurant owners and partners in RAISE (Restaurants Advancing Industry
Standards in Employment), write to express our full support for raising the wages of tipped
workers to be in line with New York’s regular minimum wage. We thank you for calling for
hearings on this matter and urge you to move quickly to implement this regulation following
the hearings.
We believe that paying workers one fair wage – by raising the subminimum wage currently in
place for tipped workers to the regular minimum wage – is good for workers and good for
business. Workers can expect better wages and equal or better tips, and we can expect a more
professionalized, more sustainable, and less sexually harassed workforce.
As the owners of restaurants and restaurant chains, we recognize that the complete dining
experience – from the quality of the food to the promptness and friendliness of the service – is
what ensures that our guests return. To create that positive experience, we rely on all of our
staff: the servers, hosts, runners, bussers, expediters, cooks, dishwashers, and more.
Tips can act as an incentive or bonus for exceptional service but should not be a substitute for
the living base wage that all workers need. To deny any of our workers the same minimum
wage that workers in other professions rightly receive creates an unfair, two-tiered system
between sectors, increasing pressure on customers to compensate for missing wages. This two-
tiered wage system makes it difficult for us to recruit and retain the truly exceptional staff that
we depend on to create a great dining experience in our restaurants. Paying our workers well
reduces training and turnover costs and ensures better service and productivity. As you know,
seven states, including California, don’t have this two-tiered wage system yet have thriving
restaurant industries.
States that already pay tipped workers the regular minimum wage have higher restaurant sales
per full-service restaurant employee (weighted by population) as well as higher predicted
industry growth compared to states with a lower minimum wage for tipped workers. Compared
to New York, states with one minimum wage have 13 percent higher restaurant sales by
population. In 2017, one-wage states had a projected 5.1 percent increase in restaurant sales
compared to 3.6 percent in New York. One-wage states also have full-service restaurant
employment and establishment growth rates that outpace New York’s. From 2011-2016, the
number of full-service restaurants in one-wage states grew by 9.4 percent, nearly double the
growth rate of New York, which saw a 4.9 percent establishment increase.
While we are thankful for your leadership on the critical issue of raising wages to lift workers
out of poverty, we were dismayed that the recent minimum wage law not only carved out
tipped employees but increased the gap between the regular minimum wage and the tipped
minimum wage from 17 percent to 33 percent.
We ask you to right this wrong by eliminating the subminimum wage for all of New York’s
tipped workers, because everyone deserves one fair wage for their work.
Sincerely,