New York State Orders Increases in Base Wages for Hospitality Industry's Service Employees, and Other Significant Changes


The New York State Department of Labor (DOL) has issued a new wage order for workers in the hospitality industry ("Wage Order"), which contains significant changes from certain long-standing industry rules. Although the Wage Order is effective as of January 1, 2011, the DOL has provided employers with an implementation period lasting through February 28, 2011, to make necessary payroll system changes to comply with the rule's requirements. It is important to note that all additional wages owed to employees as a result of the Wage Order must be computed retroactively to January 1, 2011. Key provisions of the Wage Order are summarized below.

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