The majority of New York City-based restaurant workers reported declining tips after the city enacted a COVID surcharge that allows restaurants to add a 10 percent surcharge on top of any bill, according to a report released by One Fair Wage. Black restaurant workers reported the largest decline in tips; 75 percent said that tips were down 50 percent or more.
In addition, the report finds that in January 2021, 35 percent of New York City restaurant workers indicated that their employer was using the surcharge. Fifty-seven percent of those reported that their tips—which a majority of workers said were already 50 percent less than pre-pandemic levels —declined even further after their employer implemented the COVID-19 surcharge.
Nearly 80 percent of all New York workers reported that their employers were not consistently following all COVID-19 safety protocols, and Black workers were far more likely to report that their employers were not following specific safety protocols that would protect them from the virus.
Facing all of these challenges, 38 percent report that they are considering leaving their job. Of these workers, half said they are leaving because of COVID concerns, and 41 percent said they are leaving because of low wages and tips.
“We need to support New York City’s restaurant industry during the COVID-19 crisis, but as we do that - local government officials cannot just provide relief for restaurant owners at the expense of restaurant workers,” said Saru Jayaraman, president of One Fair Wage, in a statement. “Even before the pandemic, tipped restaurant workers struggled to survive on a subminimum wage that forced them to rely on customer tips to make the minimum wage.
Related: CA Relief Package Includes $2 Billion in Grants for Small Businesses; Nearly All NYC Restaurants Could Not Pay December Rent.