Legislation combats theft by requiring businesses to provide workers with daily reports on tips and outlaws union-busting tactics 

New York, NY | On Thursday, February 13th, New York City Council Member Shahana Hanif introduced Intro. 1182, The Tip Theft Prevention Act, alongside Council Members Nurse and De La Rosa. If passed, the legislation would ensure workers receive a daily report that details the tips that customers issued to them. 

The Tip Theft Prevention Act originated when workers of a local food establishment informed Council Member Hanif’s constituent services team that their boss was stealing tips customers made via credit and debit cards. Upon learning that this issue has been a growing problem industry-wide due to the increased prevalence of digital payment and tipping platforms, the Council Member worked with labor organizations, including One Fair Wage and Workers United NY NJ Regional Joint Board, to develop this legislation.

The Tip Theft Prevention Act also responds to illegal union-busting tactics that Starbucks recently used in New York City. In order to dissuade workers from organizing, they implemented the option for customers to tip by card at all of their non-union stores nationwide while stripping the option to tip by card at all unionized stores. This negatively impacted the take-home pay of unionized baristas. Ultimately, Starbucks rescinded this policy after sustained pressure from Starbucks Workers United. Council Member Hanif’s legislation would build on this victory by proactively requiring all businesses that employ tipped workers and accept payment for food and drink via card to also accept tips via card.

Council Member Hanif is introducing the Tip Theft Prevention Act amidst growing organizing by workers in the food service industry. In her district, the Council Member has supported newly unionized workers at the Brooklyn Strategist Board Game Cafe and Starbucks. She also authored and passed legislation that required all employers to distribute the Workers’ Bill of Rights, a new comprehensive guide to labor protections that apply to all employees regardless of immigration status. At the state level, she supports A01200 and S.415-A, which Assembly Member Jessica González-Rojas and State Senator Robert Jackson recently introduced to eliminate the subminimum wage for tipped workers.

“Workers deserve every penny that they’ve earned,” said Council Member Shahana Hanif. “I’m proud to be introducing the Tip Theft Prevention Act to ensure that workers receive the tips that customers have left for them in full. Daily reports on tips are an important mechanism to stop wages from being stolen.” 

“If your business accepts card payments, your workers should have the same ease and security in accessing the tips they’ve earned through that payment method.” said Council Member Sandy Nurse “Exploitative business owners have taken advantage of the lack of transparency, effectively stealing from their workers. We are fighting back against wage theft, and Council Member Hanif’s Tip Prevention Act is a step towards ensuring fair pay and accountability.” 

“Already underpaid, living on unlivable wages, and experiencing upticks of harassment at the workplace, our tipped workers are further being stiffed by unscrupulous employers through tip theft,” said Council Member Carmen De La Rosa, Chair of the Committee on Civil Service and Labor. Hard-earned tips should belong to the workers. The Council is introducing another tool to address these immoral acts to protect our workforce and bring transparency in accounting for lost payment.” 

“The restaurant industry is notorious for having the highest levels of wage theft of any industry, largely due to the subminimum wage for tipped workers,” said Saru Jayaraman, President of One Fair Wage. The complicated two-tiered wage system and lack of transparency around tips have only made it easier for employers to shortchange their staff. Many tipped workers already struggle to receive their base pay due to the subminimum wage, and without clear records of their earnings, they have no way of knowing if they are being shortchanged. The Tip Theft Prevention Act will provide workers with much-needed transparency to ensure they keep every dollar they earn. This legislation is an important step toward what tipped workers ultimately need to truly eliminate wage theft in restaurants and other service establishments: One Fair Wage—a full minimum wage with tips on top—so workers are never forced to depend on an unreliable and easily manipulated system.”   

“After my team at Astor Place unionized, Starbucks punished us by stripping our customers of the ability to tip by card,” said Kai (they/them), Starbucks Partner. “Before we successfully organized to get them to restore card tipping, this union-busting tactic caused real financial struggle for us. That’s why the Tip Theft Prevention Act is so important and why I’m excited to support it. It would make it so other organized workers won’t have to fight these same maneuvers from bad faith bosses.”