Associated Press

Hundreds of thousands of restaurant servers, hotel housekeepers and other tipped workers in the state will soon make $7.50 an hour before tips, a big raise for them 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 with a minimum wage of $8.75.

The increase will take effect Dec. 31, affecting an estimated 229,000 tipped workers. In New York City, the tipped wage will automatically go to $8.50 (Read More)