Correcting a disparity in the state's minimum wage law, Governor Cuomo Tuesday announced a boost for service industry workers who get tips. The issue has been a source of controversy since lawmakers raised the minimum wage two years ago. Some business owners say the governor's move will lead to layoffs. NY1's Zack Fink filed this report.

At a West Side rally with union members, Governor Andrew Cuomo gave a bonus to thousands of workers who get tips: they'll be getting a raise at the end of the year.

"Leaders of business can't say 'I'm sorry, I'm broke.' They are doing great. And we know they are doing great. And we want them to do what is fair and right by labor, and that is what today is all about," Cuomo said.

In 2013, the State Legislature raised the minimum wage to $9 an hour, phased in over three years, but service workers who rely on tips were left out. 

But after heeding a recommendation from a state panel, the governor has agreed to raise the base salary of those tipped workers from $5 to $7.50.

"This is certainly a very strong foundation for us to start rebuilding the middle class in New York, starting with tipped workers who are essentially below minimum wage," said Hector Figueroa of 32BJ.

The majority of workers at the rally were union members from the hotel trades industry who are actually not affected by the wage increase. 

The crowd was still very enthusiastic, however, about any announcement that helps workers. 

The governor has been increasing his appearances in New York City these last two weeks, appealing to his liberal base with his state budget priorities for the year.

Some restaurant owners say this change will only lead to fewer jobs.

"We've seen large chain restaurants looking toward technology as a solution. Maybe you have seen restaurants that have already implemented tablets at your table. So instead of a server taking your order, you just punch it in on the tablet," says Melissa Fleischut of the New York State Restaurant Association.

There are 44,000 restaurants in New York State, roughly half of which are located in New York City. 

"Well, most of our members are small business owners. They do have a very tight profit margin. Roughly three to five percent is what we hear from restauranteurs," Fleischut says.

Advocates say roughly 230,000 servers statewide will see a pay increase, 70 percent of whom are women. Cuomo is once again looking to raise the minimum wage this year.