New York Hospitality Tip Credit Calculator — 12 NYCRR §§ 146-1.3 / 146-1.4

Q: How is New York hospitality tipped overtime calculated?

Under 12 NYCRR § 146-1.4, overtime cash wages equal the employee's regular rate before subtracting any tip credit, multiplied by one and one-half, minus the tip credit. It is illegal to subtract the tip credit first and then multiply the reduced rate by 1.5. When the worker is at the basic minimum wage, that is 1.5× MW minus the tip credit.

Q: What are the 2026 New York tip credit cash-wage bands?

From January 1, 2026 through December 31, 2026 (NY DOL): NYC / Long Island / Westchester — food service workers $11.35 cash / $5.65 tip credit against $17 MW; service employees $14.15 / $2.85. Rest of New York — food $10.70 / $5.30 against $16 MW; service $13.30 / $2.70. Fast food employees may not take a tip credit.

Q: When is the tip credit lost?

Employers may not take a tip credit for days when tipped workers spend more than two hours, or 20% of a shift, doing non-tipped work; when the required tip-credit notice is missing; for fast food employees; or, for service employees, when weekly tip averages fall below the tip threshold (2026 restaurants/all-year hotels $3.65 NYC-area / $3.40 rest; resort hotels $9.55 / $9.00).

Q: What if tips plus cash wages fall short of minimum wage?

If cash wages plus actual tips for the workweek do not reach the basic minimum wage times hours worked, the employer must pay the shortfall. That make-up is in addition to the cash wages already owed at the cash-wage and tipped-overtime rates.

Q: Is this call-in pay, spread-of-hours, or uniform maintenance?

No. Call-in is 12 NYCRR § 146-1.5. Spread-of-hours is § 146-1.6. Uniform maintenance is § 146-1.7. This page is only §§ 146-1.3 / 146-1.4 tip credit and tipped overtime.

Sourced lines: cash-wage bands, § 146-1.4 OT formula, tip threshold, shortfall

Official NY DOL tipped-workers and minimum-wage pages (HTTP 200) pin the 2026 cash-wage / tip-credit figures. Cornell LII and Westlaw reprint § 146-1.4’s overtime formula and worked examples. Tips-and-gratuities FAQ restates notice and tip-credit conditions. The live CR146 / forms.labor.ny.gov PDF hosts still Cloudflare- or TLS-fail from this build box — same as prior NY hospitality pages.

NY DOL — Minimum Wage for Tipped Workers — 2026 cash wage / tip credit table; service tip thresholds; OT at 1½× MW less tip credit; side-work limitation.
NY DOL — Minimum Wage — 2026 basic MW $17 NYC/LI/Westchester, $16 rest of NY; tipped columns.
Cornell LII — 12 NYCRR § 146-1.4 Overtime hourly rates — OT = RR before tip credit × 1½ − tip credit; worked examples.
Cornell LII — 12 NYCRR § 146-1.3 Tip credits — tip-credit structure; fast-food no tip credit.
NY DOL Tips and Gratuities FAQ (PDF) — tip credit notice; hospitality vs miscellaneous.

5×10h = 50h NYC food @ $17, tips $282.50 → cash ST 40×$11.35 = $454 + OT 10×$19.85 = $198.50 → $652.50 (no shortfall)
5×10h NYC food, tips $100 → same cash $652.50 + MW shortfall $97.50 = $750
5×10h NYC service, tips $50 (avg $1 < $3.65) → credit off → 40×$17 + 10×$25.50 = $935
Illegal (RR−credit)×1.5 on $17/$5.65 would be $17.025 OT cash — this page uses $19.85

Regular rate on this page defaults to the regional basic MW (the usual tipped-MW case). Type a higher pre-credit RR when the worker’s agreed rate before tip credit exceeds MW — OT cash still follows RR×1.5 − credit.

This is not the other New York pages

Call-in lives at /new-york-hospitality-call-in/. Spread-of-hours at /new-york-spread-of-hours/. Uniform maintenance at /new-york-hospitality-uniform-maintenance/. NYC Fair Workweek at /nyc-fair-workweek/. Do not use this page for any of those.

In scope

2026 cash-wage / tip-credit / tip-threshold bands by region × occupation
§ 146-1.4 OT cash = RR×1.5 − tip credit
MW shortfall make-up when cash + tips < MW × hours
Service tip-threshold and side-work / notice / fast-food credit kills
FLSA weekly 40 on hours actually worked

Out of scope

12 NYCRR § 146-1.5 call-in (separate page)
12 NYCRR § 146-1.6 spread-of-hours (separate page)
12 NYCRR § 146-1.7 uniform maintenance (separate page)
NYC Admin. Code Fair Workweek
Miscellaneous industries Part 142 (tip credits ended 31 Dec 2020)
Tip pooling / tip sharing allocation among employees

FAQ

How is New York hospitality tipped overtime calculated?

Under 12 NYCRR § 146-1.4, overtime cash wages equal the employee’s regular rate before subtracting any tip credit, multiplied by one and one-half, minus the tip credit. It is illegal to subtract the tip credit first and then multiply the reduced rate by 1.5. When the worker is at the basic minimum wage, that is 1.5× MW minus the tip credit.

What are the 2026 New York tip credit cash-wage bands?

From January 1, 2026 through December 31, 2026 (NY DOL): NYC / Long Island / Westchester — food service workers $11.35 cash / $5.65 tip credit against $17 MW; service employees $14.15 / $2.85. Rest of New York — food $10.70 / $5.30 against $16 MW; service $13.30 / $2.70. Fast food employees may not take a tip credit.

When is the tip credit lost?

Employers may not take a tip credit for days when tipped workers spend more than two hours, or 20% of a shift, doing non-tipped work; when the required tip-credit notice is missing; for fast food employees; or, for service employees, when weekly tip averages fall below the tip threshold (2026 restaurants/all-year hotels $3.65 NYC-area / $3.40 rest; resort hotels $9.55 / $9.00).

What if tips plus cash wages fall short of minimum wage?

If cash wages plus actual tips for the workweek do not reach the basic minimum wage times hours worked, the employer must pay the shortfall. That make-up is in addition to the cash wages already owed at the cash-wage and tipped-overtime rates.

Is this call-in pay, spread-of-hours, or uniform maintenance?

No. Call-in is 12 NYCRR § 146-1.5. Spread-of-hours is § 146-1.6. Uniform maintenance is § 146-1.7. This page is only §§ 146-1.3 / 146-1.4 tip credit and tipped overtime.