New York Codes, Rules and Regulations
Title 12 - DEPARTMENT OF LABOR
Chapter II - DIVISION OF LABOR STANDARDS
Subchapter B - Minimum Wage Orders
Part 146 - HOSPITALITY INDUSTRY
Subpart 146-1 - MINIMUM WAGE RATES
Section 146-1.4 - Overtime hourly rates
An employer shall pay an employee for overtime at a wage rate of 11/2 times the employee's regular rate for hours worked in excess of 40 hours in one workweek. When an employer is taking a credit toward the basic minimum hourly rate pursuant to section 146-1.3 of this Subpart, the overtime rate shall be the employee's regular rate of pay before subtracting any tip credit, multiplied by 11/2, minus the tip credit. It is a violation of the overtime requirement for an employer to subtract the tip credit first and then multiply the reduced rate by one and one half.Example 1: Non-tipped employee (when the basic minimum hourly rate is less than or equal to $10.00).Example 2: Tipped employee (when the basic minimum wage was $5.00, and the maximum tip credit was $2.25, for food service workers).
| An employee regularly paid $10 per hour who works 50 hours in a workweek: | |
| Regular rate: | $10.00 per hour |
| Overtime rate: | $10.00 x 1.5 = $15.00 per hour |
| Wage for 40 hours: | $10.00 x 40 = $400.00 |
| Wage for 10 hours: | $15.00 x 10 = $150.00 |
| Total $550.00 | |
| A food service worker regularly paid $7.25 per hour minus a tip credit of $2.25 per hour, for a wage rate of $5 per hour, who works 50 hours in a workweek: | |
| Regular rate: | $7.25 per hour |
| Overtime rate: | $7.25 x 1.5 = $10.875 per hour |
| Wage rate for 40 hours: | $7.25 - $2.25 = $5.00 per hour |
| Wage rate for 10 hours: | $10.875 - $2.25 = $8.625 per hour |
| Wages for the workweek: | $5.00 x 40 hours = $200.00 |
| $8.625 x 10 hours = $86.25 | |
| Total $286.25 | |
| Alternative calculation: | |
| Wages for the work week: | $7.25 x 40 hours = $290.00 |
| $10.875 x 10 hours = $108.75 | |
| Subtotal $398.75 | |
| Minus tip credit | $2.25 x 50 hours = - 112.50 |
| Total $286.25 |
