‘End Tipping’: 45 Pics That Show Tipping Culture In The US Needs To Change, And Fast

Marketing expert Alberhasky explained to Bored Panda how customers can gently push back against Tipflation. According to him, it helps when people have a number in mind going into the purchase when they’re asked to tip. This can be any percentage of the bill.

"Having a standard amount you want to tip going into a purchase helps prevent nudges to tip more (which is common on tablets via high default choices) or social pressure from the cashier or those behind you in line to make a fast decision," he told Bored Panda in an email.

"Sticking to your guns in terms of what you tip for standard service helps to provide a buffer when nudges or social pressure arise when you're paying," he said.

“Research from Uber and former Chief Economist John List suggest most consumers have a habit or idea in mind for what they prefer to do, with 60% of riders never tipping, 20% of riders always tipping, and 20% of riders deciding to tip or not based on the quality of their ride.”

Alberhasky also commented on the drastically different minimum wages across various states in the US. "Service industry workers doing the same job in California likely earn more than workers in Nebraska. If the overall minimum wage is increased, it may indirectly affect tipped employees," he told Bored Panda.

"For example, if the regular minimum wage goes up, employers may also be required to increase the cash wage for tipped employees. Additionally, changes in the minimum wage can have broader economic implications, usually impacting the cost of goods and services purchased, which may impact tipping practices," Alberhasky explained.

"In circumstances where tipping is the norm (bars, restaurants, coffee shops), increasing wages and prices is likely to lead to higher tips because customers are tipping the same percentage on a larger bill. In circumstances where tipping is not standard yet it's an option (fast food restaurants, bowling alleys, tattoo shops), increasing prices is likely to decrease tipping because customers are facing an expensive bill that would make tipping additional money seem unreasonable," he said. 

For some more expert insights, be sure to check out Alberhasky's ‘Psychology, Money, and Happiness’ blog on Psychology Today.

The tipping system in the US is convoluted and confusing, to say the least. Wage laws and attitudes toward minimum wages vary from state to state.

Pew Research Center calls it a patchwork system: “For example, a restaurant server in Waukegan, Illinois, is entitled to a $13 minimum wage—$7.80 in direct wages from the restaurant, plus a $5.20 tip credit. But for a server 17 miles away in Kenosha, Wisconsin, the minimum is $7.25—with $2.33 in direct wages from the restaurant, plus a $4.92 tip credit.”

As Pew points out, the minimum wage for most workers, under US federal law, is $7.25 per hour. However, there is a major caveat.

If an employee is a tipped employee, their employers can pay them just $2.13 per hour… so long as they get the remaining ‘tip credit’ of $5.12 per hour in tips. The employer is bound to make up the difference if their employees do not meet this minimum in tips.

The minimum wage in 30 US states and the District of Columbia is higher than the federal minimum. The variety is massive. It ranges from $8.75 per hour in West Virginia to nearly twice that—$17—in DC.

The tip credit also varies greatly. For instance, in Virginia, the minimum wage stands at $12. However, the tip credit is $9.87, meaning that the actual minimum wage (depending on your employer and company) can be $2.13, with the rest being considered tip credit.

However, some states (e.g. California) have refused to accept tip credit as a workable concept altogether. This means that companies are supposed to pay their employees a fixed minimum wage (e.g. $16 per hour in California, far higher than the federal minimum of $7.25 per hour). They can also keep any tips they get on top of that. 

Many Americans feel pressured to tip larger and larger sums. This effectively means that going out for dinner ends up costing far more than the customers might have anticipated. The issue is that you’re expected to tip because the servers’ livelihood depends on it.

Tipping becomes less of a reflection of good service and more of a way of supporting employees who might be living paycheck to paycheck. The responsibility, which should rest on the employer’s shoulders, is passed down to the customers. 

Another issue is that tipping in the US becomes expected even in the face of substandard service. In most parts of the world, tipping is an expression of appreciation for a job well done. It’s a way to reward servers and kitchen staff for their efforts.

However, if you’re tipping even when the food’s awful, the service is horrid, and you feel disrespected, you’re effectively rewarding the business for bad behavior. This way, there’s no incentive for the restaurant to improve or to conduct better training for its employees.