Like many states, New York allows restaurants and hotels to pay tipped employees, including servers and busboys, less than the minimum wage of $8.75 an hour, provided they make up the difference in tips. New York’s tipped wage has not increased since 2011, and the federal tipped wage of $2.13 per hour has not changed in over two decades. However, the state is now considering raising its $5.00 per hour tipped minimum wage to $7.00 per hour, so workers will not have to rely so heavily on tips. Seven states, including California, have eliminated their tipped wage mandates entirely and require tipped workers to be paid the minimum wage before tips. But, earlier this month, the state wage board in New York voted against eliminating the wage entirely and is set to vote on the increase to $7.00 per hour in the upcoming weeks.

The firm will continue to monitor the developments regarding this initiative.