Why Businesses Can’t Stop Asking for Tips
wsj.com
wsj.com
I recently went somewhere and was forced to tip — as in, 0 USD/% was not an option — for literally doing nothing but ringing me up. The minimum amount was 25% of the bill.
Tips are becoming another mandatory hidden fee, which is a form of bait and switch. Wages shouldn't be part of that and it shouldn't happen either way.
> “Revenue Ruling 2012-18 reaffirms the factors which are used to determine whether payments constitute tips or service charges. Q&A 1 of Revenue Ruling 2012-18 provides that the absence of any of the following factors creates a doubt as to whether a payment is a tip and indicates that the payment may be a service charge:
> - The payment must be made free from compulsion
> - The customer must have the unrestricted right to determine the amount
> - The payment should not be the subject of negotiation or dictated by employer policy; and
> - Generally, the customer has the right to determine who receives the payment.
https://www.irs.gov/businesses/small-businesses-self-employe...
You could say "what about mandatory tipping on tables of 6 or more?" But in every case I've ever seen, it says so on the menu. That is, you're told what the deal is before you order. Whereas in this case, it sounds like the price was changed after you ordered, when you tried to pay.
Doesn't literally every POS machine violate this? I've never seen the screen ask whom my tip should go to.
Given that this is an IRS rule, it’s probably only illegal if the business reports the income as tip income to its employees, as opposed to a service fee charged by the business.
I honestly kind of felt bad, in that he probably wasn't making that much money, and the tip probably meant more to him than it meant to me. But demanding a tip and falsely telling me I'm getting more than I'm paying for is not the right way to fix that, and the pizza wasn't particularly cheap either...
If you aren't willing to stand up for yourself then you don't get to complain.
I normally tip 20% or so, but if there’s a mandatory surcharge, I just subtract it from the tip.
I suppose I could have, but I was buying food for my daughter, who was with me and was hungry.
It wasn't that much money overall, but the minimum tip amount was a pretty large percentage of the total cost. Five years ago it would have just been bundled into the cost of the item.
And now they aren't getting paid enough, which gives incentive to the employees to demand actual wages instead of the bull shit system we have now.
Ah good, revolutionary theory to support not tipping.
Sorry to have to break this to you, but "incentive" for employees to fight back is not the issue when it comes to the power dynamic between service employees and enormous companies that employ them.
Don't get me wrong, everyone unionizing and having a general strike until tipped wages are abolished seems like it would be a better solution.
But this attitude punishes people already under massive stress for not taking on extra stress and risk getting fired for complaining in the hopes that eventually the system will course correct (with how many victims between now and then?).
Cultures shift through an aggregate of individuals’ actions, and each person refusing to tip in hope of moving to the system found in certain other countries is “being the change they want to see in the world”.
Additionally it is disgusting to visit a country and intentionally violate social norms, especially ones around paying people for their labor. If Americans want to change their culture, they can do that. Behaving selfishly as a guest in another country isn’t “being the change you want to see in the world”.
If the idea that you're buying this "service" from the waiter is implied, then surely I should be able to not buy it, but that's not really an option anywhere right? You can't go to a restaurant and pick up the food yourself from the kitchen and bypass the waiter. Even if the waiter is happy to let you, the restaurant owner wouldn't. So it's not like "don't ask for service" is really an option - the restaurant is the one requiring the service payment.
(I'm not necessarily disagreeing with your overall point, but this reasoning doesn't lead me to it.)
Pick up your food and go to a park, or choose a restaurant that operates on a different model.
You don’t get to dictate the service that an establishment chooses, you do get to choose whether or not to go there.
I meant don’t implicitly ask for service by patronizing places where there is no option.
And no, I’m not going to “declare my intentions to the wait staff”. Another feature of restaurants in certain other countries that I’d like to see brought to the USA, is minimal interaction with wait staff. At a restaurant I want to be left alone to talk the people I came there to dine with, and the inane exchanges with wait staff and their feigned positivity (which they feel obliged to feign because of the tip culture) are tiresome.
Again, wait staff have multiple avenues available to them should they wish to increase their remuneration, like political involvement to shape legislation and organized labor, without expecting anything from customers.
Stiffing waiters is shitty behavior, especially when you know the expectation, and withhold expressing your intent to act contrary to custom to your own exclusive benefit. Ask for them to include service in the price they charge you so you can protest without it being at someone else’s expense. In countries where tipping isn’t the norm the service is built into the price, so if you are going to skip tipping, make sure that you also aren’t skipping the behind the scenes changes necessary for that business model.
If you wanted to actually change things you would speak to management and workers and explain that you are trying to change the world and why.
How is a waiter or management supposed to differentiate your noble intentions from those of a selfish prick, seeing as how the actions and effect are identical?
This is a dodge of the actual issue at hand. If a person is choosing to patronize a restaurant and get the benefits of someone's labor, refusing to tip is wrong. The direct result is that the person waiting the table is unfairly denied a portion of expected compensation.
If you want to "be the change you wish to see in the world," patronize restaurants that have no-tipping policies. You can't have your cake and eat it too.
There is no implied service contract when it comes to tipping.
An implied service contract is a legally-enforceable contract. For example, if you went to a barber shop and sat in the chair and the barber gave you a haircut, then it is implied that you will pay for the haircut. Theoretically, the barber could take you to court if you refused to pay, and the barber would win.
A tip, on the other hand, is gratuitous. The server performs their service in the hope that the customer will give a tip, but there is no obligation for the customer to do so. If a server tried to take a restaurant patron to court for not leaving a tip, he would lose.
I don't think OP is advocating for not tipping at places where you're getting table service. Agree or not that's the standard arrangement and it's a total dick move to refuse to tip in that situation.
What everyone's complaining about is situations where you order at a counter and are offered an option to tip on the payment system. These usually default to having a tip selected, which means you have to change it to "0%" to avoid tipping for counter service.
Seriously though, please don't come to the US and stiff waiters at sit down restaurants of their tip. It's a bad system but that's the system and it's wildly unfair to the table waiter when someone decides they're not tipping due to some sense of principled resistance to the practice.
If you eat a table service restaurant and refuse to tip because you think the arrangement is stupid (which it is), you're directly harming the person who serves you by reducing their wages for the amount of time they spent on you. You're taking a philosophical stand (at best, at worst you're just being cheap) at the cost of a real person's income. This person who has no control over the standard tipping arrangement. Your protest does not cause any change and accomplishes nothing expect worsening the day of someone who provided you a service expecting you to hold up your end of the customarily agreed upon bargain. The waiter is not offered a chance to agree to this bum deal (and if you walked into a restaurant and said "who's willing to serve me with no tip to protest the stupidity of American tipping culture?" you'd be rightfully laughed out of the room).
That's why it's a dick move.
There are plenty of options for getting fed which do not involve table service, and if you want to protest tipping culture by not participating in it, you should patronize restaurants which either don't have table service or have a no tipping policy, rather than taking it out on low level wait staff.
The law does not require customers to tip, it requires employers to pay employees at least minimum wage if employees do not receive enough tips to meet the minimum wage requirements.
The only way to hurt the business owner, would be to stop buying their products. Which is much more correct than not tipping.
It’s not that I don’t mind paying. I look at the total bill and shocked by the the difference from what it was to what was advertised. That puts a real damper on an otherwise good time.
Consequently I vote with my wallet and stopped going out almost altogether. I much prefer cultures where the price advertised is what you pay. I hope the silver lining to excessive tipping results from backlash and the movement to a non-tip society. My wife is from a non-tip society (Japan) and always asks me why some counties can do it and others don’t. It’s incredibly frustrating.
????
https://chicago.suntimes.com/2023/1/25/23570024/restaurants-...
An additional 3% fee (for whatever) is common. You can ask to have to taken off, but then I feel like an asshole. I get that things might cost more — rent, raw materials, staff, etc. The business should build that into the price upfront. It feels like a dirty trick to disclose it at the end and puts me, the customer, in an awkward spot that makes me feel bad.
I also don't understand protesting inflation a global phenomenon (in varying amounts) that is difficult to solve.
But yes, the craziness is coming here too. I have not seen it myself, but my friend complained about grocery store self-checkout asking for tip. Touchscreen order terminals in fast food takeout places also ask for tip, of course.
I could see more of a case for tipping at non-self-checkout. At least there, the employee is doing the work. But even there, why has it changed? What's different from what they were doing 10 years ago?
I could also see tipping checkout people during Covid (though I didn't think of it at the time). They were putting their health, and maybe their lives, on the line so that I could continue to eat. That was way above and beyond the job they thought they were signing up for. Tipping then would have been a kind of hazard pay.
This is the first time I hear this stated as a fact rather than a theory, where has this been confirmed to be happening exactly?
https://www.francetvinfo.fr/economie/autoentrepreneurs/trava... (in French, video)
https://www.nytimes.com/2019/06/16/business/uber-eats-delive... (in English, article)
> French labor law allows independent contractors to outsource to legal workers, but Uber Eats, Stuart and Glovo said they prohibited subcontracting.
But: if this happens in Marseille/Nice, I'm ready to bet organized crime has a hand in it. Mafias still have a lot of power there, and they're taking all the fringe paralegals businesses.
Any time Europe does something it doesn't like I always read how it's an "imported" trend (usually from America). Europeans just can't ever accept they are responsible for their own behavior. They're just helpless and twisting in the wind at America's mercy when it comes to these things.
Of course, when it comes to things they're proud of then they're a strong independent people that don't need no America.
A restaurant or a pub, yes, a taxi, yes, a bellhop or another hotel employee, maybe (there, the tip might serve as a borderline bribe for being discreet, e.g. if a married man books a room with an unmarried lady for one night). Literature older than 100 years mentions tipping in similar contexts.
OTOH tipping would look very strange, say, at the post office. Just not done. Perhaps leaving some very small change on the tray, but that's it. Same with most retail shops.
Perhaps not a beggar who does nothing. But there are beggars around here who will provide services. There are buskers playing guitars, violins and drums, with the case open to accept cash. (Or Stripe, if they're savvy.)
There are also dudes who will run up to your vehicle at a stoplight, wash some windows and squeegee them, before you even know what's going on, and then you're supposed to offer some money for the valuable service you just received.
I've also seen dudes who will, like "keep an eye on your bike" while I'm in the restaurant. Is that a valuable service or a protection racket?
India also has massive degrees of unemployment and poverty, and probably the largest population of beggars. It still doesn't dignify tipping and begging, let alone put the onus of disgrace on customers who don't tip.
Firstly, how is charging $15 for 1oz of liquor a fair price? Secondly, I don’t think anyone thinks tipping is truly optional.
In theory that sounds right but in practice it seems to be quite different.
https://www.businessinsider.com/south-park-creators-eliminat...
https://www.nytimes.com/2020/07/20/dining/danny-meyer-no-tip...
If you don’t declare tips and pay taxes and unemployment, why would you expect to benefit from those programs?
Yes, tipping in the US is its own peculiar local minimum -- a cycle or trough that is difficult to escape from. A big component of the costs to both employees and employers alike is health insurance, something that if we nationalized, spreading the burden across the population as a whole, would be relieved from individuals and businesses. Especially small businesses.
My country has nationalised healthcare, yet you still have to pay for private doctors. There are no state dentists or pediatricians. And waiting list for surgery is months or years.
I would prefer that prices reflected their true cost, but in the meantime I'm not going to stop tipping because that is only hurting the workers and isn't fixing the core issue.
Another thing I have seen is the POS machines placing the highest tip amount next to the 'No Tip' option. So if I feel like tipping the least amount, and I intuitively select the button next to 'No Tip', it actually ends up being the most.
However, it makes sense to tip in niche industries e.g casinos, special clubs, digital content providers/opensource software etc.