This entry was inspired by Wait But Why’s unsurprising blog post on the necessity of tipping (linked below). In the lead in on Wait But Why’s Facebook page, he says
Tipping is about making sure you don’t mess up what you’re supposed to do.
I call his blog post unsurprising because he admits to having once been a server. He claims he was “undertipped” — but I disagree that undertipping is a real thing. I disagree with the tipping system in general, but we’ll get to that. Lots of things make no sense:
When I was in grad school, a fellow grad student told me that he had spent years as a waiter at a high-end restaurants making $100K per year (tax-free). He reported only enough of his tips to make it appear that he was making minimum wage. It was hard for him to leave that lifestyle behind — he only worked dinner hours and was free to party and sleep in the rest of the time.
Sure, he was providing a needed service. But was his work really of more value to society than, well, that of most people? The median income of an American worker is far below $100K, after all. And if your meal at a cheap restaurant costs $10, but a meal that took similar efforts on the part of the waiter cost $100 at a fancier restaurant, does the fancy waiter really deserve 10x the tip?
Claims that waiters rely on tips
According to US Federal law on tipped workers:
If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.
Though the rest of his article seems … if not well researched then at least researched … his claim that in the case of some tipped workers, “customers are in charge of paying the professional’s salary”. He even goes on to emphasize that for waiters and bartenders:
Your tips are literally their only income.
That is literally not true, unless the businesses they work for are violating federal law.
In what sense can we agree that service workers “rely” on tips? Only in the sense that they are gambling on their salaries: counting on the tipping system to get them more than minimum wage. Because, I’ll say it again, minimum wage is guaranteed by federal law. Even if a tipped worker doesn’t receive a single cent in tips, he will make the maximum of federal/state/local minimum wage, and furthermore, it will be his employer that pays the difference, not the customer — as it should be!
Now that we know tipped workers are guaranteed minimum wage, let’s examine the entitlement. I’ve gone to dinner with foreigners here and let them refuse to tip. We’ve been chased out into the street by angry servers asking if they did something wrong. I’ve been told “the standard tip is 15%” when I had paid the check separately and was intending to leave the tip on the table. I’ve had discussions with people who have been tipped workers, and the attitude is that customers “owe” them at least a 10% tip — and that’s the low end that’s supposed to be reserved for totally crap service. The blog post below claims that it’s never acceptable to tip below 15%.
Why do tipped workers believe they deserve a certain amount? A simplistic answer is that the broken tipping system in America has given them that expectation. It’s the norm to tip. There’s social censure if you don’t. People call you cheap and waiters follow you down the street. But is it reasonable for a service worker to expect more than minimum wage? Most service positions don’t require much in the way of specialized skills or education. They are not any more demanding or dangerous than other minimum wage jobs (WalMart workers, for example). There isn’t a shortage of willing waiters. Maybe I’m missing something, but it seems silly that they should expect more than minimum wage. And if they could get it with their skill set, I’m sure they would work elsewhere — where the salary was guaranteed. Yet, they willingly work for tips — probably because it’s easy to underreport them when it comes time for income taxes.
Just don’t tip. There should be a business card that people leave in place of adding a tip. One that says more or less:
Your service was [Excellent Good Fair Poor], but in any case, I don’t tip because your wage should come from your employer, not the customer. If you believe your wage is unfair, you should take it up with your manager.
Maybe there could also be a link to some kind of Anti-Tipping Society with more info on politicians/labor unions/etc that they can become involved in to demand a fair salary that doesn’t rely on tips.
Remember: if you believe that it’s the restaurant’s responsibility to pay the tipped worker and not yours, then you shouldn’t tip – because the restaurant only has to pay $2.13 an hour if you decide to be Mr. Moneybags and leave a generous tip. That’s right — the restaurant paid your server $2.13 while you paid $20 for that $100 meal. Why on earth should you be paying 10 times as much as the actual employer? Why should someone with no special skills or education be making $100K/year, tax-free? Everyone who tips is contributing to the problem we have today. I think the only way to motivate anyone to change this system is to stop tipping.
Everything You Don’t Know About Tipping