Tipping

Employers of "tipped employees" are required to pay them $2.13 per hour in direct wages if that amount, combined with the tips, at least equals the federal minimum wage of $7.25. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer has to make up the difference. However, this differs from state to state. This interactive map shows what tipped workers make per hour in every state.

The suggested holiday tip amount for garage attendants is between $10 and $50, whereas the suggested holiday tip amount for doormen in apartment buildings is between $25 and $100 each.

That’s a sharp increase from the 75% who thought tipping culture had gone too far in 2024. One potential culprit? The proliferation of tipping screens in places outside sit-down restaurants, such as coffee shops and hair salon. Three in 10 Americans say they give less when presented with tipping screens.

Tipped employees (anyone who makes $30+ per month in tips) are not federally entitled to a traditional minimum wage. Customers determine their earnings. The National Restaurant Association believes that if restaurant owners are forced to pay above the subminimum wage for tipped workers, restaurants could be forced to close.

In recent years, companies such as Square and Toast have created touch screen technologies prompting customers at coffee shops and casual restaurants to tip upwards of 25%. Despite the interesting psychological conundrum this presents to consumers, one tech columnist argues that shoppers don’t need to succumb to the pressure.

By 1868, Pullman, who operated luxury sleeping cars on the country’s growing network of railways, had started hiring formerly enslaved Black men as porters for extremely meager wages, working long hours in poor conditions. He encouraged wealthy passengers to tip them, helping institutionalize tipping in the US.

A 1966 amendment created the “tip credit,” which allowed restaurants to pay below minimum wage if tips compensated the difference. However, this federal tipped minimum wage has remained frozen at $2.13 per hour since 1991, whereas the regular minimum wage has increased multiple times since then.

Saru Jayaraman has run One Fair Wage since 2020, an offshoot of a 9/11 relief organization for displaced workers and victims’ families she helped start shortly after the attacks. Seventy-three employees of the World Trade Center’s top-floor restaurant were killed on September 11.

That’s significantly higher than the rate for restaurant workers overall. Approximately 37% of tipped workers are mothers, nearly half being single moms struggling with income volatility. This article includes more statistics about what the average tipped worker looks like and offers a peek inside their lives.

This map shows how other countries stack up to the US in terms of tipping norms, and could be helpful if you’re planning to budget for a trip abroad. It also indicates if tips are typically included in the bill in each country.