Comments on: Why the tip jars are coming out

By: George

George — Wed, 27 Jan 2010 22:03:14 +0000

employers are and should be prohibited from collecting tips as they do in tip jars. California labor laws clearly explain that no employer shall collect or receive any part of the gratuities paid, given or left for an employee by a patron. Likewise, federal laws explain that all moneys presented by customers as tips are to be retained by the employee who receieved the tip, not collected by the employer in a jar with no one’s name on it.

By: George

George — Thu, 05 Nov 2009 18:41:44 +0000

The reason there are more and more tip jars showing up is, our government passed a law which allows employers to pay tipped employees $2.13 an hour, rather than the normal minimum wage of $7.25 an hour.

What the tip credit law amounts to is, an employer can steal up to $5.13 an hour in tips from an employee who receives at least $5.13 in tips. Rather than stealing the money directly, employers simply deduct up to $5.13 an hour from the employee’s hourly wages.

Now that our government has passed a law allowing employers to steal a portion of their worker’s tips, businesses across our country are both soliciting tips and suggesting that customers should tip more. Just look at how the expectation of tips in restaurants has risen from what used to be 10% for good service to what is now 20-25% for good service.

The reason business want customers to tip and tip more is because our government is allowing them to steal the tips.

By: JB

JB — Fri, 09 Oct 2009 19:07:44 +0000

I’m not a fan of the tip jars everywhere or as jennifer888 mentioned the tip line on receipts everywhere!

The whole process gets very confusing and uncomfortable. I tip well at restaurants. But when I go to Starbucks is it necessary to tip the barista? Isn’t that the main function of their job. Or my favorite bakery where they hand me the pastry?

I’d rather see a living wage at these types of places, and I understand it would transfer that cost to the consumers. At least the cost of frequenting that establishment would be very clear.

By: RGates

RGates — Fri, 09 Oct 2009 15:28:09 +0000

As a note Oregon is another state where you do not pump your own gas. And is enforced by law actually. ORS 480.330, 480.990.

By: Michael

Michael — Wed, 07 Oct 2009 06:53:28 +0000

I think another consequence is that as tip jars become more common, and people use them more often, the business owners may very well start lowering wages of the employees until all of these other jobs are basically run like wait staff jobs. The waiter/waitress gets below minimum wage and the norm is for the customer to pay the waiter/waitress.

By: PeterM

PeterM — Tue, 06 Oct 2009 13:35:01 +0000

I see there are two sides of the coin – I understand why the business owners introduce these practices. But on the other hand, if I’m supposed to give a tip, I expect that to get something in return – a perfect service, a smile or something like that. It wouldn’t cost them anything either. So, I only give a tip if I’m 100% satisfied and I believe it’s fair enough.

By: jennifer888 @ Negotiation Board

jennifer888 @ Negotiation Board — Tue, 06 Oct 2009 12:32:43 +0000

In my neck of the woods the worst of these “tip jars” can be found in the new tip line they have added to credit card receipts requiring your signature at virtually every place possible! I have even seen them in mall food courts where they expect to be tipped for handing you a piece of pizza without a smile. Now I have nothing against giving a good tip (I used to be a waitress after all), but I agree that many of these places have gone too far!

By: traineeinvestor

traineeinvestor — Tue, 06 Oct 2009 04:51:22 +0000

I have serious reservations about criticising the business owners for these practices without examining why they adopt them.

If the owners are doing this to pass on increases in the cost of running their business, then it is fair and reasonable that the consumer ultimately pays for those costs. If the consumers don’t like it, don’t use the service.

Business owners also exist in a (usually) highly competitive environment. Anything which they can (legally) do to make their business more attractive to potential customers, they should do. If they don’t their competitors will and they will eventually end up out of business.

By: Matt Jabs

Matt Jabs — Tue, 06 Oct 2009 04:27:41 +0000

I stopped eating out so I don’t have to worry about this. However, anyway you slice it the burden of increased prices ultimately falls on us as consumers.

If tip jars were not used, employers would simply have to increase wages, which would mean increased prices, which would also fall on consumers.

Inflation is the problem – and that is caused by our gov’t continuing to be the largest counterfeiting operation in the history of the world. Oh… we need more money? Ha ha… just print it!!