Following a conversation with the owners of Simone’s Kitchen, a well-known counter service restaurant on Jay Street in downtown Schenectady, Assemblyman Angelo Santabarbara has introduced new legislation that would give fast-casual restaurants like Simone’s the option to legally implement equitable tip pooling policies.

Under current state labor law, counter service restaurants are often treated the same as full-service, sit-down restaurants when it comes to tip sharing rules. 

This outdated classification creates legal uncertainty for small business owners who want to share customer tips fairly among all hourly employees—including kitchen staff.

“This bill is about fairness and common sense,” said Assemblyman Santabarbara. “Places like Simone’s Kitchen are already doing right by their workers—paying above minimum wage and building a team-oriented culture. But the law hasn’t kept up. This legislation provides the clarity they need to ensure all staff can benefit from the tips customers choose to leave.”

The bill would clearly define Counter Service Restaurants (CSRs)—businesses where customers order at a counter and food is delivered by runners or support staff—as distinct from Traditional Sit-in Restaurants, where full table service is provided by waitstaff. CSRs that pay all employees at or above the state minimum wage would be allowed to adopt tip pooling systems that fairly distribute tips based on hours worked.

The bill was shaped by input from Bashir and Melissa Kahn, co-owners of Simone’s Kitchen, who raised the issue during a meeting with Santabarbara’s Office earlier this year.

"In counter service formats like ours, every team member plays a role in creating the experience our customers come back for,” said Bashir Chedrawee, owner of Simone's Kitchen. “We’re proud to support our staff fairly with strong wages and benefits to start, and this bill would also help small businesses like ours ensure the entire team can also benefit from the tips customers leave. We appreciate Assemblyman Santabarbara for listening and stepping up to help create a fairer, more modern system for counter-service restaurants."