Is ‘tip fatigue’ a sign it’s time to end tipping in the U.S.?

“The 360” shows you diverse perspectives on the day’s top stories and debates.

What’s happening

Tipping has been a regular part of American culture for well over a century, but the emergence of new technology and shifting expectations have scrambled long-standing norms around the practice. That uncertainty, and the pressure it can often create, has left some consumers feeling exhausted by the frequency with which they’re forced to decide which workers to tip and how much.

A big reason for the growth of what is being called “tip fatigue” is the increasing presence of digital payment systems, which have replaced traditional cash registers at most businesses. Suddenly, rather than being given the chance to drop a dollar in a tip jar, customers are confronted with a tablet asking if they want to throw in extra money for the staff. The popularity of digital point-of-sale systems has also meant consumers are being asked to tip more frequently — often for services they’d never considered tipping for in the past.

Americans famously tip larger amounts and in more situations than people in other countries. But, as accepted as the practice is, it’s been a source of intense debate since it was first introduced as a way for white employers to exploit newly freed slaves after the Civil War. More recently, disagreements have centered on whether tipping allows employers to pass their labor costs on to their customers.

Tipping also makes labor laws more complicated. In all but a handful of states, employers are allowed to pay tipped workers below minimum wage — in some cases as little as $2.13 per hour — as long as they make enough in tips to earn the equivalent of minimum wage.

Why there’s debate

Frustration about the shifting landscape of tipping in modern America has added new wrinkles to the debate over whether tipping standards need an overhaul — or even should be scrapped altogether.

Some experts argue that the current wave of consumer discontent is a natural result of dramatic changes that have taken place in the service economy over the past few years. They make the case that this unease will go away once society has a chance to create new norms governing when to tip and businesses get a sense of what customers are willing to tolerate.

But others say tipping needs to be eliminated and replaced by a fair wage for all service workers. They argue that the practice allows businesses to avoid paying employees what they deserve and that no worker should have their livelihood depend on their customers’ whims — which are often guided by sexism, racism and a range of idiosyncratic factors.

While few argue that tipping is a perfect system, defenders of the current arrangement say it’s still the best option. They say many tipped workers make far more money than they would with a standard wage and many businesses would be forced to close or drastically raise prices if they had to cover all of their labor costs themselves. At the same time, many advocate for ways to make tipping more equitable, specifically by eliminating the “subminimum wage” for tipped workers.

What’s next

The state of the economy and other cultural forces appear to have some effect on how much Americans tip. Average tipping rates appeared to spike during the early phases of the pandemic before declining sharply over the past year. With so much uncertainty about the country’s economic future — which could include relief from inflation, a recession or both — it remains to be seen what the attitudes toward tipping are a year from now.

Perspectives

Tipping is a scam that forces consumers to cover companies’ labor costs

“As the practice seeps into other hospitality settings and other forms of commerce, let’s not debate who ‘deserves’ tips. Instead, let’s reject the con of tipping — and how it obscures the true cost of goods and services — from invading other areas of our lives.” — Corey Mintz, NBC News

Tipping is the best option for everyone

“Tipping is the ultimate profit-sharing plan. It’s a chance for workers to have more control over their financial welfare. It gives them some skin in the game. If a restaurant is doing well because it’s safely operated, properly managed and delivers great food, and customers are enjoying the experience, then they will usually tip. The better the experience the better the tips. And when that happens, everyone – from the wait staff to the dishwashers – can share in the business’s success.” — Gene Marks, Guardian

Workers shouldn’t have to endure harassment in order to make ends meet

“American tipping culture is due for a complete overhaul. Tipping justifies businesses underpaying workers, it makes servers more vulnerable to sexual harassment, and is discriminatory. Which service positions receive good tips is arbitrary.” — Lillian Karabaic, Slate

Consumers can push back to bring back sanity to tipping

“As consumers, we should remember that we are in control. We choose when, where and how much to tip. While tipping is a social norm, no one should feel pressured to tip more than the standard percentage, if at all. If a business is prompting you with a tip percentage higher than you are comfortable with, you can always enter a custom amount that you feel is appropriate instead. We can send a message that we won’t be pushed or guilted into tipping.” — Michael von Massow, Conversation

The service economy has changed, but the need to tip hasn’t

“The blurred lines between fast-casual service and full service restaurants present customers with more confusing tipping situations. But whether service is administered casually at the counter or formally at the table, the almighty tip still stands as the critical source of income for service workers.” — Adam Reiner, Bon Appétit

There are easy fixes to make tipping better

“Unlike the early advocates who argued against tipping altogether, most tipped workers today don’t really want to get rid of tipping. Instead, they want a regular minimum wage with tips being a bonus on top. They want transparency about tips and wages from their employers, respect for their work, and, in the case of restaurant workers, equity between front-of-house and back-of-house workers.” — Crystal Paul, Seattle Times

The system is broken, but tipping is still a must until it’s fixed

“Is it our ‘responsibility’ to tip well? No. The government and employers should ensure workers get paid a livable wage. But in the absence of a systemic overhaul where workers, regardless of industry, earn a decent living and tips no longer function as a lifeline, it’s the right thing to do.” — Farnoosh Torabi, CNET

Technology has made tipping unnecessarily stressful

“The worker is directly across from you. Other customers are standing behind, waiting impatiently and looking over your shoulder to see how much you tip. And you must make a decision in seconds. Oh lord, the stress. Customers and workers today are confronted with a radically different tipping culture compared to just a few years ago — without any clear norms.” — Nathaniel Meyersohn, CNN

Tips should be a reward, not an obligation

“There is so much wrong with the American system of tipping. Where once tipping may have been a reward for superior service, it is, in reality, a diner tax used to guilt-trip patrons into supplementing workers’ wages.” — Michelle Singletary, Washington Post

Digital payment systems are the real problem

“It’s easy to cross the line from honest persuasion to harmful manipulation. … Some people will be so flustered they might end up hitting the most prominent button not because they want to, but because they can’t find the option that they’re looking for. When that happens, it doesn’t really feel like a consumer has made a choice. It feels like they’ve been forced.” — Harry Brignull, consumer design expert, to Vox

Discomfort around tipping is a symptom of the radical ways our economy has changed

“Consumption has never been easier, and that has the added effect of making some consumers feel queasy about where their money goes and who benefits. … In a sense, we are watching cultural behaviors change in real time in a volatile cultural and economic environment. Tipping feels weird because everything feels weird in America in 2023.” — Charlie Warzel, Atlantic

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Photo illustration: Yahoo News; photos; Nam Y. Huh/AP, Getty Images