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Is Tipping Culture Out of Control? When It’s Appropriate to Skip the Hint

Harry October 31, 2024

We’re all familiar with the situation: you’ve just ordered a coffee, and after you tap your credit card, the payment kiosk rotates to show the suggested tip amount of 25% to 30%. What are you doing?

Many Americans these days are confused about tipping protocols. According to the survey results announced by Pew Research CenterOnly one-third of nearly 12,000 U.S. adults say it is extremely or very easy to know whether or how much to tip for different services.

While there’s no definitive method for determining tipping rules, here’s what you need to know about the history of tipping, recent developments changing tipping culture, and how to approach tipping going forward.

Key Takeaways

Workers who earn more than $30 a month in tips are considered tipped employees and typically earn a base wage of just $2.13 per hour.
Digital payment systems have increased the pressure to tip, leading to “guilt delegation” in situations where tips are not expected.
Tipping is now more common across a variety of services; many Americans are unclear about etiquette, which contributes to increased tipping amounts; It’s called a “tip”.
No tip is required for counter service and no extra is needed if there is automatic tipping. If the service was poor, it’s okay to tip less, but aim to not go below 10%.

The Evolution of Tipping Culture

Post-Civil War Origin

Tipping in the United States has a complicated history. It was largely unknown in the United States before the Civil War, but it gained traction after wealthy Americans visited Europe, bringing the practice home with them. Tipping is also said to reflect a darker side of American history; because tipping grew as the restaurant and hospitality industries began hiring newly liberated Black men and women. They were often not offered a salary, instead relying on tips to make ends meet.

The Rise of Technology

With the advancement of technology, the demand for tipping has also increased as the tipping option has become more common. Digital payment systems leverage design principles that influence tipping behavior. For example, clicking “no tip” at a buffet is more compelling than deciding not to tip without being asked. This has led to a phenomenon known as “guilty tipping,” where consumers feel pressured to leave a tip.

The Role of the COVID-19 Pandemic

Many restaurant and hospitality workers struggled during the height of COVID-19. So tips increased to support these industries. While tips per order were decreasing before the pandemic, they increased by $1.24, reversing the previous negative trend, according to a National Library of Medicine analysis of tip data.

Expectations for the rollover appear to have not diminished since the pandemic. This may explain why tipping amounts have remained high over the past few years.fly” by news sources.

Nearly 7 in 10 adults say tipping is expected at more places today than five years ago, according to survey findings released by Pew Research.

Who is considered a tipped employee?

Many service workers today rely on tips to make ends meet. The Department of Labor considers an employee who regularly receives more than $30 per month in tips to be a “tipped employee.”

Under federal law, employers who hire tipped workers are required to pay only $2.13 per hour in direct wages as long as that amount, including tips, meets the federal minimum wage. If the total amount does not reach the minimum wage, the employer must cover the difference.

Some states set a higher minimum wage. For example, the tipped minimum wage in Alaska is the same as the standard minimum wage ($11.73 per hour by 2024). Other states, such as Florida and Maine, have set extreme minimum wages that exceed the federal mandate but do not match the state standard minimum wage.

Cities and regions may also set higher minimums in some areas. New York City has a tipped minimum wage of $10.65 (as of 2024); that’s 65 cents higher than the state-mandated tipped wage. And “quick service workers” in New York state earn the same $15 per hour minimum wage, whether they are tipped employees or not.

Notes

Tipping is one of the hottest topics in the upcoming election, as both presidential candidates have proposed exempting tips from taxes.

When Should You Tip?

When You’re in a Service-Based Organization

You should expect to tip in places like restaurants, bars, lounges, and hotels. This includes servers, bartenders, hotel bellhops, delivery drivers, valet drivers and more. It’s also customary to tip your hairdresser, nail artist, and food delivery driver.

The actual tip amount varies depending on the service, but restaurants generally follow the 15% to 20% rule. RealSimple offers a tip etiquette guide directory specific recommendations on when and how much to tip.

For food delivery apps, a fair amount might be $3 to $5 per delivery. If weather conditions are challenging, consider adding a few extra dollars.

When Should You Consider Skipping a Tip?

When Paying for Meter Service

According to CNBC, tips are not expected because those who work at the counter usually earn a salary. However, leaving a tip can be a thoughtful gesture, especially if you are a regular customer, as it can help build a positive relationship with staff.

If There’s Already a High Service Fee or Automatic Tip

Sometimes restaurants already implement an automatic tip, especially for large parties. Since it’s already included, there’s usually no expectation to add to it. With this in mind, if you had a great meal and service, a 5-10% extra tip is a nice way to show your appreciation.

If the service is not good

If your expectations were not met, it is acceptable to tip less than usual; Some people may tip as low as 10%, but it is recommended that you do not go below that. Be mindful of conditions beyond your server’s control, such as a slow kitchen.

Is it rude not to tip?

Unless the service is terrible, most etiquette experts recommend that restaurant employees not skip tipping.

Which Professions Should I Not Tip?

You should not tip salaried professionals. This includes teachers, plumbers, lawyers and cable technicians.

How Can I Show Appreciation If a Tip Is Not Expected?

For example, salaried employees such as teachers do not expect tips. But there are other ways to show your thanks. Consider giving a gift card or writing a handwritten card during the holidays. And of course, saying “thank you” verbally does not go unnoticed.

How Do I Know If a Tip Is Already Included?

When you look at your bill, this may be listed as a “service charge” or a “tip.”

In conclusion

Tipping culture in the United States is shaped by history, economics, and evolving social norms. Changes in technology and the post-pandemic world have left many Americans unsure of what to do. But researching these practices and staying current can paint a clearer picture of changing expectations. By doing this, we can ultimately help both customers and employees.

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