Governor Andrew Cuomo announced the creation of a wage board on tipped worker pay.
Right now, service workers are paid $5 an hour.
If the tips don't add up to the minimum wage, the employer makes up the difference.
But many service workers say that rule is rarely enforced, making it hard to make ends meet.
Smaller businesses say a wage increase could be disastrous for their bottom line.
The wage board will look at current regulations and suggest changes.
It is being created as a part of an agreement last year to raise to state's minimum wage to $9 hour by the end of next year.