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Tipping culture in U.S.

There are laws in place for service workers related to minimum wage. The employers have to make up the difference if tips don’t meet the rate for hours worked. It seems to me that’s not sufficient for the times.

Hypothetically, if everyone were to stop tipping in the U.S. would things be better or worse for workers? Would employers start paying workers more?

99 comments
  • I was in the restaurant industry for several years and I've never met anyone who was paid that difference. Sleazy restaurants just won't pay it because most servers don't even know about it. Even in more reputable establishments, when managers see tips are low, they don't just stand around until they have to pay their servers more, they start slashing hours. A tipping strike would be distributive, but it would probably lead to less servers and worse service rather than end tipping.

    The real issue is that propaganda has turned customers against servers, when the reality is that the restaurant is their enemy. The restaurant is paying a starvation wage and expecting you to directly subsidize their staffing costs. The National Restaurant Association spends millions every year fighting local legislation that would pay servers a living wage, while simultaneously forcing restaurant employees to pay for certifications they need to do their jobs. They're pocketing money from both customers and servers while watching them fight over tipping culture.

    There are a lot of servers who prefer tips, especially younger people who are more likely to live with their parents and want quick cash. But most older restaurant employees would prefer stability to quick, inconsistent cash. At the end of my time in the service industry, I had moved over to event bartending, where I was rarely tipped but made $30 an hour. If their was a large migration from a tipped wage to a living wage, most servers would see the benefit and get on board.

    The problem is, in the absence of any legislation, the only efforts to change tipping culture come from individual restaurants, and they always fail. Many restaurants try a living wage and go back to tipped wage because they just don't do as well. No matter how many times you explain that the server's wage is reflected in the price of the meal, people see a $22 item that usually costs $20 and think it's too expensive, even if they're losing money tipping $4 on $20.

    So, a tipping strike would certainly be distributive, but it's more likely to hurt servers and customers than restaurants. Trying to get ballot initiatives to end the tipped minimum wage locally would be more effective, but be ready to fight the National Restaurant Association when they come to town (and believe me, they will).

  • It has been a long time but when I waited on tables for $2.xx / hour no one ever told me about any minimum I had to make or the employer would pay more. If that exists it is new and I wonder how common it is. If my tips were shit, I took that hit and got no help from the employer.

    I was fortunate to be from a state where minimum wage for tipped persons was the same as everyone. I also kept that rate when I transferred to a state where tipped employees were paid $2.xx / hour. My mistake was moving to a different employer and the lower hourly rate.

    A lower hourly rate for tipped employees is pure profiteering bullshit on the part of employers. It should be outlawed at the federal level. There is no good reason for an employer to get in the middle of an employee and customer. Customers tip employees, NOT employers.

  • (This is simplified and generalized)

    In the short term it would be worse for workers. Their employers are only required to make up the difference in pay to the non-tipped minimum wage (the normal minimum wage). With tips most servers are making above minimum wage (depending on the restaurant some servers are making quite a bit more than minimum wage; it can be a viable career for some). If a server had been making more than (non-tipped) minimum wage, and everyone stopped tipping, they would probably lose money since their employers are not required to make up the difference to what they had been earning with tips. Since the federal minimum wage is not a livable wage for most of the population, this would be very bad for the servers.

    Longer-term it could make a difference, since those servers would likely start leaving their jobs for better paying jobs elsewhere and the restaurants would have to raise their base pay to compete or risk closing. To some extent we’re already seeing this in some industries. I’ve noticed most of the fast food restaurants (non-tipped) are advertising starting pay close to double the federal minimum wage. If the crisis became large enough Congress might be forced to finally raise the minimum wage.

    Making employees rely on tips instead of paying them a fair wage is a bad system. I’m not sure how to end it in a way that doesn’t hurt the employees, though, short of congressional action.

  • It would be terrible for servers. Every server will report different incomes, but when I served tables I was paid way above a fair wage. I could never imagine an employer matching the $40+/hr I made bringing food to tables on the weekend.

  • Every server would quit and get a different job because no restaurant is going to match what they were making in tips, and it's not worth the hassle to serve for what the restaurant could afford. Service quality would regress to the minimum, because there's no incentive to provide prompt, high quality, friendly service.

    Anyone who's never waited tables vastly underestimates how much the tip incentive effects your server checking on you frequently, answering your questions and making recommendations, getting your food out quickly and ensuring everything is satisfactory, refilling your beverage frequently, bringing your check promptly, and doing it all diplomatically even when you're being an asshole.

    Frankly, I think American service expectations are a bit high, but if you're used to it then all that would stop very shortly after the customers stop tipping. Think of the performance of every other minimum-or-near-minimum wage hourly worker. That's your server. Anyone with the professionalism to maintain that kind of service will move on to Sales or something.

99 comments