A state board in New York has recommended an increase in the hourly wage paid to restaurant servers and other tipped workers.
The Wage Board voted Friday in favor of raising the so-called tipped wage from $5 to $7.50 an hour at year's end. Servers would be paid a dollar less if they make significantly more than the minimum wage when tips are factored in.
The law allows employers to pay tipped workers less than the minimum wage if gratuities make up the difference.
Labor groups wanted the tipped wage eliminated altogether so servers would make the standard minimum wage before tips. But restaurant owners said higher labor costs would be a burden.
The recommendation now goes to the state's labor commissioner for a final decision.
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