The New York State Department of Labor has issued its long-awaited final Hospitality Industry Wage Order applicable to hotels and restaurants, among others. The new Wage Order will be effective January 1, 2011. It makes substantial changes to the rules governing payment of wages to employees in the hospitality industry. It should clarify rules applicable to an industry that has been besieged with class action lawsuits for overtime pay and tip misappropriation. The December 15, 2010, final Wage Order is the culmination of nearly two years of administrative proceedings. A Wage Board held numerous public hearings throughout the State and issued recommendations to the Commissioner of the Department of Labor. The Department of Labor issued a Proposed Order on October 20, 2010 (see our article, Proposed Hospitality Industry Wage Order Would Mandate Significant Changes for New York Restaurants and Hotels). The final Wage Order is substantially similar. Highlights of the Wage Order include the following:
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