What are the new rules for tipping?
Businesses that never seemed to ask for a tip before — like grocery stores, self-checkout machines, and fast-food restaurants — are now asking for one these days.
While some of our experts say much of the etiquette remains the same (for example, if you're not sure about who or how much to tip, don't be afraid to ask), there are a few new variables to keep in mind.
How to deal with unexpected tip requests
If a business you don't expect to ask for a tip is suddenly asking you for a tip, what should you do?
Beware of 'screen pressure'
Some businesses load their payment systems with default minimum tip options of more than 20%. If you don't want to give that much, don't worry about holding up the line to take an extra moment to select the "custom tip" option, says Singh.
When in doubt, ask
If you're not sure whether you should tip or how much, simply ask the person who is serving you, says Singh. He shares some helpful questions:
- What is the minimum and subminimum wage in your state? If the subminimum wage is low, your tip will help the employee make a livable wage. If there is no subminimum wage, tips are actually gratuity.
- Do you keep your whole tip?Some payment systems take a portion of the tip, so that may be a factor in how much you decide to leave behind.
- How can I make sure you're getting my tip? Some businesses might not be tipping the person you think your money's going to.
Don't forget to tip people with whom you might not have direct interaction, like hotel housekeepers, says Singh.
Why tipping culture has changed
Tipping expectations have grown over the past few years. According to a 2023 Pew Research survey of nearly 12,000 adults in the U.S., about 72% say they are being asked to tip service workers more frequently than in the past. And only about a third say it's "extremely or very easy" to know when and how much to tip.
One reason is the pandemic. We started tipping people that we didn't previously tip and tipping more than usual as a way to support essential workers at a time of crisis, says Singh.
At the same time, the technology around how we pay has changed, says Singh. Square, the company behind many electronic payment screens, gets a cut of each transaction. So, creating software that encourages tipping (and encourages big tips) means more money for companies like Square.
Tipping is also a way to pay workers more without actually raising their wages. It allows restaurants to get more money to workers while still keeping their prices low, says Sean Jung, a professor at Boston University's School of Hospitality Administration.
Why we tip in America
In the U.S., we have a two-tier wage system, says Sylvia Allegretto, a senior economist at the Center for Economic and Policy Research who has done extensive research on wages and tipping. "We have minimum wages, and then we have subminimum, or cash wages paid to workers who are tipped."
There's the federal minimum wage of $7.25 an hour, but every state has the ability to set their own minimum wage. Some states have minimum wages that are more than twice that.
Article sourced and adapted fromNPR, written by Stacey Vanek Smith
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