Companies will have to start paying their workers who receive tips at least minimum wage by the end of the year. However, this new law left out restaurant workers.
While many groups oppose cutting out wait staff, some servers are saying they are happy to be left out.
"It was worth it to us, yes," said Christopher Tripp, a server and bartender for Olde Bryan Inn in Saratoga.
Tripp was one of hundreds of restaurant workers that actively fought against the Department of Labor’s first proposed changes. The Labor Department held public hearings across the state for two years hearing from employees who make less than the minimum wage and receive tips.
In the end, their final proposal requires companies like car washes and hair salons to pay their tipped workers minimum wage, but left out servers. Tripp says he is happy about that.
"If every server was paid the 'legal minimum wage,' then a lot of small businesses would go out. They would have to shut their doors," Tripp explained.
Tripp says servers are fearful that if people know that they are making more then they will be tipped less. And smaller businesses might have to cut staff in order to bridge that minimum wage gap, which is about $2 in upstate New York.
"The hostesses, the bussers, a lot of those people would be let go," said Tripp. "And then servers would have to do double or triple the work, meaning you would get worse service when you go out to restaurants. Most restaurants would actually raise their menu prices so you’re paying more."
However, seven states already require that all tipped workers, including servers, be paid minimum wage on top of their tips. And groups like Restaurant Opportunities Centers United say that there is no reason it should not be the same here.
"California, Washington, Oregon, Nevada, Alaska and even Montana, Minnesota. There is no way for New York to be behind on this issue," said Teofilo Reyes with Restaurant Opportunities Centers United.
Governor Andrew Cuomo did not specify in his press release why he and the Department of Labor decided to leave out restaurant staff in this new minimum wage order.