Tips on tips: Survey shows people are getting fed up with new gratuity environment

Have we reached a tipping point?
A survey by the WalletHub website shows a high degree of public unease with the evolving etiquette for tipping your waiter, bartender, barber and others. Exactly how many others and who they are is part of the argument.
Gratuities have even wiggled their way into the political culture. In 2024, both the Trump and Harris campaigns proposed eliminating taxes on tips.
Part of the growing public disgruntlement has to do with the pandemic and part with technology.
During COVID, writes NPR’s Stacy Vanek Smith, people often tipped more to support employees who continued to work among the public.
Also, more businesses have turned to electronic payment processing systems that suggest tip amounts when you pay your bill. Since the providers of the systems often work for a piece of the payment, there’s an incentive to suggest a large tip.
Either way, many workers rely on gratuities.
The general minimum wage in Louisiana is $7.25 an hour. But for employees in frequent tipping environments, such as waiters and waitresses, there’s a “sub-minimum wage” of $2.13 per hour. If tips don’t make up the difference, the employer must.
A 2023 Pew Research survey of 12,000 American adults found that 72% said they are being asked to tip service workers more frequently than in the past.
And WalletHub’s survey found:
•Nearly nine in 10 Americans think tipping culture has gotten out of control.
• Nearly three in five Americans think businesses are replacing employee salaries with customer tips.
•83% of people think automatic service charges should be banned.
•More than one in four Americans think tips should be taxed (as they are now).
•Nearly three in 10 Americans tip less when they’re presented with a tip suggestion screen.
•40% of people believe tipping should be replaced by an instant employee rating system so businesses can decide how much to pay their staff.
For an interesting look at the ins and outs of tipping, here’s what QANTAS, the Australian airline, tells passengers about the etiquette in the United States.
•How much? “A gratuity of 20 to 25% on top of the bill (before sales tax) is standard, with extra given for topnotch service. Servers in America work hard for the money – they’re generally friendly, knowledgeable and willing to go the extra mile for customers.”
•Bad service? “Bad service is unusual but it happens. To not tip at all, though, the service would have to be dreadful. Leaving just 10% is a clear indication that the experience was not up to par.
“If you really don’t think your waitperson deserves to be paid for their service, the best course of action is to explain to the restaurant manager why you’re not leaving a tip.”
•Did the restaurant add a gratuity to the bill? “Some restaurants will take it upon themselves to add a gratuity if you’re with a large party or it’s a public holiday. If the bill reads ‘gratuity included,” you’re not required to pay extra.”
•In a bar? “The accepted standard is $1 a beer. If you’re heading out to a bar, ensure you have a pocketful of dollar bills. Order and pay for your drink and leave a dollar bill on the bar for the bartender – it’s not necessary to put it in their hands. If your barkeep slings you a free beer, leave the standard tip even if you’re not paying for the drink.
“For a complicated cocktail, however, the standard 20% rate is recommended.”
•Tip for fast food or take-out coffee? “At fast food chains such as Dunkin Donuts or In-and-Out, the answer is no. In any other establishment such as specialist delis, cafes and fast-casual joints from taco trucks to hot dog vendors, 10% is the accepted minimum amount.”
•Who else? “Taxi drivers, hairdressers, beauty therapists, porters and those who deliver food will all expect a fee for their services. … Generally, 20% is fine and if you’re paying cash just add a couple of extra dollars – the same applies for Uber drivers.
“For hairdressers, manicurists and beauty therapists, the standard is 20% plus a few dollars for the apprentice who washes your hair. If you order food to your accommodation, it's recommended that you tip a minimum of $5 or 20% (or more if they had to schlep up stairs or battle inclement weather) to the delivery person – cash is preferred.
“Tip porters, or bellhops, $1 per bag they carry or $2 for heavy bags.”