What Do You Do About Tipping?

Summary

The video explores tipping practices, tracing their origins back to feudal Europe and their racist legacy in the U.S. It highlights how employers have historically exploited tipping to avoid paying workers fair wages, especially following the 1966 Fair Labor Standards Act. While tipping has become more common, with digital tablets increasing its prevalence, it continues to perpetuate the cycle of low wages. The video provides guidance on when to tip and when to skip, emphasizing that those who rely on tips for income should receive them, while professionals with a full salary or those providing quick counter service may not require a tip.

Takeaways

• 😀 Tipping has historical roots dating back to feudal Europe and was used to exploit workers, particularly formerly enslaved people in the U.S.
• 😀 In 1966, Congress amended the Fair Labor Standards Act to offer a minimum wage to tipped workers, but the federal tipped wage has remained stagnant at $2.13 per hour since the '90s.
• 😀 Some states have raised tipped wages, but 16 states still maintain a federal wage below $5 an hour, leaving workers reliant on tips for income.
• 😀 The pandemic led to an increase in consumer tipping, referred to as 'The Great Pandemic Tipping Boom of 2020', benefiting workers but maintaining employer reliance on tips.
• 😀 Digital tipping options, like iPads and tablets, have become increasingly common, making tipping more ubiquitous in everyday transactions.
• 😀 Employers often use tips to justify paying workers less, creating a cycle where employees depend on customer generosity instead of fair wages.
• 😀 Tipping is expected for jobs that rely on tips for income, such as servers, bartenders, and baristas, especially when the worker's income is based on tips rather than salary.
• 😀 Professional services where workers receive a full salary, such as dermatologists, do not generally require tipping, according to etiquette experts.
• 😀 Quick counter services, where the customer does most of the work (like ordering takeout), are also situations where tipping is not necessary.
• 😀 Tipping is always optional, and customers can skip tipping if they feel the service was poor or if the worker does not rely on tips for their income.

Q & A

What are some common tipping situations mentioned in the script?

Common tipping situations include getting a cup of coffee, dining at a restaurant, or visiting a dermatologist, all of which often involve being asked to tip via digital tablets.

How did tipping originate, and what is its historical context?

Tipping dates back to feudal Europe and has a racist legacy. It was used in the U.S. to exploit formerly enslaved people by employers who avoided paying them fair wages.

What significant change occurred in 1966 regarding tipping laws in the U.S.?

In 1966, Congress amended the Fair Labor Standards Act, establishing a meager base pay for tipped workers, though the federal tipped minimum wage has remained at $2.13 per hour since the '90s.

How does the federal tipped minimum wage compare to state requirements?

The federal tipped minimum wage has remained at $2.13 per hour, but some states set higher rates, while 16 states still maintain the stagnant $2.13 rate and 13 others have rates below $5.

What is 'the great pandemic tipping boom' mentioned in the script?

The 'great pandemic tipping boom' refers to the change in consumer behavior during the pandemic, where people tipped more generously, benefiting workers but also reinforcing the cycle of employers relying on tips to make up for low wages.

What role do digital tablets play in tipping today?

Digital tablets have replaced traditional tip jars and provide a variety of tipping options, allowing consumers to tip more frequently, often for services that are partly subsidized by employers.

Why is there a debate about whether workers should rely on tips for income?

There is concern that tipping maintains a cycle where employers justify low wages, leaving workers dependent on the goodwill of customers, which is especially problematic for workers with unstable incomes.

When is it generally considered appropriate to tip?

It is generally appropriate to tip workers whose jobs rely on tips for their income, such as bartenders, servers, and baristas, or in cases like takeout during adverse conditions like a snowstorm.

When is it acceptable to skip tipping?

It is acceptable to skip tipping when visiting professionals like dermatologists who earn a full salary, or for quick counter service where the customer does most of the work, such as at a self-service froyo station.

Can consumers decline to tip if they are unsatisfied with the service?

Yes, consumers always have the option to decline tipping, especially if they feel the service was poor.