New York has announced a major increase in the minimum wage for hundreds of thousands of workers.

Tipped workers currently make $5 an hour, but ABC News reports that Governor Cuomo has announced an increase of $2.50 for New York workers in the hotel and food service industry. Amny.com places that number at 400,000 people.

Many small business owners are voicing their objection to the prospect of paying workers a 50% raise, but hourly workers say it's about time.

The increase will take effect Dec. 31, giving businesses plenty of time to prepare.  Governor Cuomo made the announcement at a Manhattan labor rally, says ABC News. He addressed both workers and business owners:

"The sweetest success is shared success...We want business to do well and to have businesses growing. ... That is what New York has been about. That is what this nation is all about. That is what this wage increase is all about.

Seven states have actually abolished tipped wages altogether, paying service workers the full minimum wage before tips. Right now, the average yearly wage for New York food service workers is $19,103.

 

 

More From WPDH-WPDA