Cuomo administration to raise tipped wage to $7.50
Restaurant servers, hotel housekeepers and other tipped workers in New York will soon make $7.50 an hour before tips, a big raise for thousands of workers and a significant increase in labor costs for business owners.
Like most states, New York allows businesses to pay tipped workers less than the state’s minimum wage as long as tips make up the difference. Currently, servers in New York make $5 per hour, compared to a minimum wage of $8.75.
The increase will take effect Dec. 31. In New York City, the tipped wage will automatically go to $8.50 an hour if the city gets permission to raise its minimum wage above the state’s rate.