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Valparaiso Univ. Law School

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Tuesday, January 28, 2014

And Still More on Tipping

WaitressLast week, Myanna Dellinger posted about tipping and Uber.  One piece of information she provided in that post that was new to me was that servers were tipped only about 10% on the West Coast until about ten years ago.  It seemed odd to me that there should be a more stingy tipping culture in the West.  After all, one does not imagine Hollywood players threatening one another with "You'll never tip 10% in this town again."  

Yesterday's New York Times provides a timely explanation of this anomaly.  It turns out, tips may be lower on the West Coast because wages are higher.  While the federal minimum wage for waiters who earn tips is only $2.13, states are free to mandate higher miniumum wages, and states in the West are most likely to do so.  In Washington State, a waiter's base pay is $9.32/hour.

Myanna has lived in Europe so she knows that the real solution to the problem is to pay servers a living wage.  If restaurant patrons want to reward them for especially fine service, they are welcome to do so, but with many servers living below the poverty line, they should be protected against economic surges and depressions that are beyond their control.  

The restaurant industry protests against any rise in the minimum wage and is fighting legislation supported by the Obama administration that would incrementally increase the minimum wage for tip-earners to $7.25/hour.  But restaurants can learn from cabbies.  Pass increased costs onto customers by increasing menu prices, but then recommend that patrons tip only 10%.   Across the nation, people with math phobia will delight in the ease of calculation.

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