New York Tipping Rules Have Changed; Are You Leaving Enough?

New Yorkers who are planning on dining out over the holiday season should be aware that tipping rules have drastically changed.

American tipping culture has become a subject of hot debate as more and more transactions come with the option to leave a gratuity. While many people disagree on whether it's acceptable to ask for an extra percentage at the checkout counter, leaving a tip for restaurant servers is something that everyone can agree on.

Now, I'm sure plenty of people will flood the comments section saying that tipping should be banished and that customers shouldn't be forced to pay workers' salaries. That's certainly a conversation that can be had, but the reality right now is that tipped food service workers in the Hudson Valley can be paid as little as $10 an hour. Until the rules are changed, which doesn't seem likely any time soon, restaurant customers are obligated to tip.

What Are the Tipping Rules in New York?

As mentioned above, New York State restaurant workers receive a minimum $10 cash wage with a $5 tip credit. What that means is that restaurants can pay servers the state minimum wage of $15 an hour by claiming $5 in expected tips as additional income. Restaurants in New York City, Long Island and Westchester have slightly different rules that essentially give servers an additional 65 cents an hour.

Not many people understand or realize just how little money is paid to restaurant servers in New York. Knowing how low the minimum wage is certainly makes you twice about cheaping out on the tip.

Tipping Suggestions in New York Have Changed

We all remember learning that 15 percent was an acceptable tip. It's a rule of thumb that many people still use today. Unfortunately, that calculation is long outdated. In 2024, even a 20 percent tip is looked at as a low number by servers and etiquette experts.

Customers are now being advised that a 20 percent tip is considered the bare minimum. New Yorkers should consider leaving more than two dollars on every ten, especially if they have a small bill.

How Much Should You Tip a Restaurant Worker in New York State?

According to restaurant workers we've spoken to, acceptable tips are now between 20 and 25 percent. A 15 percent tip is generally considered insulting, which makes sense once you know that workers can be paid just $10 an hour.

Etiquette experts also say that pulling out a calculator to figure out your tip is a big no-no. Dividing out a gratuity to the cent can also be considered insulting. Instead, it's suggested to round up whatever tip you were going to leave to the nearest five or ten.

Those who have an issue with tipping are advised to take their grievance to the politicians and business owners who control those decisions. Cheaping out on the tip to prove a point only affects the worker who is at the mercy of how the system works. You don't have to like tipping, but until the law is changed it's something we all need to accept when we decide to dine out.

It may be psychologically difficult to cough up an extra four or five dollars, but those extra few bucks won't realistically make much of a difference on your bill. The extra tip, however, is vital to workers who are trying to support themselves and their families.