New York state panel considers higher wage for tipped workers, still below minimum wage

Servers, busboys and hotel housekeepers in New York could soon get a raise — though not as big an increase as advocates wanted.

A state board is considering recommending a proposal to boost the wage paid to servers to $7 an hour from $5. State law allows servers and other tipped workers to make less than the state's $8.75 minimum wage, as long as their tips make up the difference.

Labor advocates wanted the board to recommend making the tip wage the same as the minimum. But that proposal was defeated by the board Thursday.

Instead, the board's chairman suggested increasing the tipped wage by $2 for servers and by $1.35 for other tipped workers.

The state labor commissioner will make the final decision after the board's formal recommendation.