Effective January 1, 2011, the new Part 146 titled “Hospitality Wage Order” covers employees in both the Hotel and Restaurant Industries. Effective January 1, 2011, the Wage Order will increase the tipped minimum wage, increase the spread of hours coverage and affect other areas such as tip pooling and tip sharing, record keeping and private event contracts

While the Wage Order becomes effective on January 1, 2011, the NY DOL has granted restaurants and hotels a grace period to educate themselves on the new rules and make all necessary payroll system changes needed to comply with the requirements of the new Wage Order. By March 1, 2011 (or the next regularly scheduled pay day following March 1, 2011), all employees covered by the Wage Order must be paid any additional wages owed to them on account of the increases retroactive to January 1, 2011.