In the United States, under the Fair Labor Standards Act (FLSA), workers classified as tipped employees receive wages from their employers that are below the minimum wage. As a result, tips are essential for their livelihood.
However, there has been criticism recently that employers are responding by simply increasing tipping rates rather than ensuring that their workers earn the equivalent of the minimum wage through a combination of wages and tips. Moreover, employers are pushing customers to tip for services that traditionally did not require tips, effectively turning regular wage workers into tipped employees.
Following the practice of asking for excessively high tips on card terminals may not always benefit workers in the long run. This trend might merely be a way to shift the burden of wages onto customers, maximizing the employer's profits.
As the cost of living increases, the amount given as a percentage-based tip naturally rises with the price of goods and services. Any additional wage compensation should be the responsibility of the employer. If we continue to follow the current criticized trend, we may soon find ourselves paying twice the listed price.
We have accepted the tipping economy as a result of a long historical process. Be cautious of attempts to disrupt the well-established boundaries of who qualifies as a tipped worker and what constitutes an appropriate tip rate.