Update:
The tipped wage is base wage paid to an employee that receives a substantial portion of their compensation from tips. According to a common labor law provision referred to as a “tip credit”, the employee must earn at least the state’s minimum wage when tips and wages are combined or the employer is required to increase the wage to fulfill that threshold.[1][2][3] This ensures that all tipped employees earn at least the minimum wage: significantly more than the tipped minimum wage.
Federal law
The American federal government requires a wage of at least $2.13 per hour be paid to employees that receive at least $30 per month in tips.[4] If wages and tips do not equal the federal minimum wage of $7.25 per hour during any pay period, the employer is required to increase cash wages to compensate. As of May 2012, the average hourly wage – including tips – for a restaurant employee in the United States that received tip income was $11.82.[5]
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When I was young, tips were 10% of the bill. Then 15% became the “fair” tip. Then 18% and now 20%. Some restaurants charge a minimum tip on the bill for large parties – over 6 – 8 people. Do you tip the tribute tax on the bill?
The food and service are not any better. I do know that the waiters and waitresses in popular restaurants take home several hundred dollars in tips in one night. Mostly tax free. I also know that there are waiters and waitresses who are struggling.
A simple business analysis will show the end result: people will stop going to eat out when the economy collapses so this is all moot.
David DeGerolamo
I spent over 20 years in foodservice as executive chef at mainly hotels and private country clubs.
Most servers do not take home several hundred dollars a night in tips tax free-in fact most people pay using credit/debit cards,and include the tip on the card-by law those tips must be reported to the IRS as tipped wages by both the business and the server.
The federal minimum wage for waiters,waitresses and bartenders is a whopping $2.13 an hour.
Any server who is attentive to the table,asks if the food is okay soon after it’s been served,promptly clears dishes etc. deserves that 20% tip.
Think how many trips back and forth from table to kitchen and/or bar the server makes to serve your table. Don’t forget-they put all the linens on the table,set the silverware,etc before the customers arrive. They do a lot of work for which they only get that $2.13 an hour before you get to the restaurant.
I have to wonder why a tithe is 10% of my earnings and the Lord supplies ALL my needs and a waiter supplies some of my needs for one meal and seeks 20%. I worked in the electronics field for over 50 years. I trained for it, went to school for it dedicated my life to it as a trade and loved my “trade”. The way I see it is that if you aren’t making enough, get another job. Don’t depend on others to help pay your wage as a demand “fee”. I have had good “wait staff” and some that were just mindless cloths wearing order takers yet they also seek the 20% tip. If I find someone that does a good job as a “wait person” i tip but please don’t require me to the demand of 20%. If you don’t like it get another job.
Here’s a funny joke; A little old man goes into a restaurant. He asks the waiter for the soup of the day. The waiter brings the soup. The waiter goes by and sees the old man just sitting there. The waiter asks ,”how do you like the soup”? the little old man says , “try the soup”. The waiter says, “what’s wrng is it to hot? to cold? what is wrong with the soup? The old man says, “try the soup”. The waiter says, Why what’s wrong with the soup”? The old man says, “just try the soup”. The waiter says, “ok, I’ll try the soup, where’s the spoon”? The old han says, “ah ha”. Get it? sometimes you have to remind the wait staff to do their job. Do we get to split the tip then?
I don’t care how busy they are, I’m number one. I don’t care if they have to set the table, it’s part of the job. I don’t care what they make as a wadge, it’s their chosen “profession. They get 10% same as God.
I tip only if the service is well above ordinary.
I was a waitress in the 70s and I get aggravated at the griping that somehow the % of the tip needs to double. This is because back in the day a cup of coffee was .30 A food plate averaged $6.00 and I worked for .50 an hour. NOW the food has increased to three and four times a plate of food nowadays. Coffee is average $2.00 plus dollars at any restaurant. I worked for .50 an hour. I made good money and yes I plaid taxes on tips. So I don’t see the 10-20% a must increase. This is pure BS in my book. I tip according to service and if I order small because I eat slow and I’m not a big eater.