As a law firm that represents small business entities in Labor and Employment disputes, we understand the importance of staying up to date on the latest regulations and laws governing the hospitality industry. This article will provide an overview of Part 146 Hospitality Wage Order, which sets forth minimum wage and other requirements for employers in the hospitality industry.
What is the Hospitality Wage Order?
The Hospitality Industry Wage Order (“Order”) is a set of regulations issued by the New York State Department of Labor (NYSDOL) that applies to employers in the hospitality industry. The Order outlines the minimum wage rates, overtime pay requirements, and other provisions that apply to workers in this industry.
Which Employers are Covered by the Order?
The Order applies to employers who operate in the hospitality industry in the state of New York. This includes employers who operate hotels, motels, restaurants, catering services, and other businesses that provide food or lodging services to the public.
What are the Minimum Wage Requirements?
The minimum wage requirements set forth in the Order vary based on the location of the employer and the size of the business. As of January 1, 2024, the minimum wage rates are generally as follows:
- For New York City and the remainder of downstate (Nassau, Suffolk, and Westchester Counties): $16.00 per hour
- For employers in the rest of New York State: $15.00 per hour
Employers should note that these rates are subject to change, and they should check with the NYSDOL for updates.
What are the Overtime Pay Requirements?
Employers in the hospitality industry must pay overtime to employees who work more than 40 hours in a workweek. The overtime rate is 1.5 times the employee's regular rate of pay. So, for example, if an employee works forty-eight (48) hours in one workweek and his regular rate of pay is $15.00 per hour, the employee’s pay for that week should be calculated as follows: ($15.00 x 40) + ($22.50 [overtime rate] x 8 [overtime hours]) = $780.
Other Requirements
In addition to minimum wage and overtime pay requirements, the Order sets forth other provisions that apply to employers in the hospitality industry. For example, employers must provide employees with meal periods and rest breaks, and they must maintain accurate records of hours worked and wages paid. Another example is the spread of hours rule. Under this rule, employees who work a shift that spans ten or more hours must receive an additional hour of pay at the minimum wage rate in effect at the time the work was performed. This provision ensures that employees are compensated for the extra strain of working long shifts. Finally, employers should also be aware that the Order includes provisions related to tip credits, uniform maintenance, and other topics that are specific to the hospitality industry.
Part 146 Hospitality Wage Order is an important regulation that employers in the hospitality industry must comply with. Understanding the minimum wage and other requirements set forth in the Order is essential for avoiding potential labor and employment disputes. KI Legal is here to help employers in the hospitality industry navigate New York’s complex labor & employment landscape. Our experienced attorneys can provide guidance and support at every stage of the process, from reviewing wage and hour policies to defending against claims of non-compliance. Contact us today to learn more about how we can help you achieve compliance with Part 146 Hospitality Wage Order and other labor and employment regulations. Call (212) 404-8644 or submit a contact form on our website at kilegal.com for a free consultation.
This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.
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