By Dalia Diaz
A few days ago, I heard someone on the radio recounting the time he and a group of friends went to a restaurant in Boston; the bill came to $200 and they added a $20 tip for the server.
A little later, she came back notifying them that her supervisor said it was not sufficient for her service.
That motivated me to write (again) about why we tip at all. Many years ago I worked as a host at a restaurant and learn about it. At the end of their shift, servers get a computer printout with the total sales. They all get added to the W-2 form that must be presented to the IRS at the end of the year in order to pay taxes on their income. The IRS estimates that they must have received 15% gratuities on the total sold so, for every bill where the customer left less than the required 15% tip (and sometimes leaving nothing), is costing the server money because it is assumed that he or she received it.
A few times I saw my friends following a customer into the parking lot to explain what they had done. To my surprise, I heard some times, “If you don’t like it, take it up with the restaurant owner.”
Now let me give you a little history of how that got started and what current laws have to say.
Tipping dates back to slavery. In England, it was a noble idea by giving something extra to their workers for having done additional work or duties. When it came to the United States the idea was rejected for having racial elements because almost all workers were recently freed slaves. Eventually, that custom was eliminated in Europe but it took hold in this country until February of 1967 when the federal minimum wage went up to $1.00 an hour for nonfarm workers.
Currently, the federal minimum wage is $7.25 an hour but for “tipping workers” is just $2.13 an hour. If after working 30 hours the worker has not met the $7.25 per hour minimum combining the tips with the hourly rate, the employer must make up the difference. In restaurants like Applebees, IHOP, and Olive Garden, servers earn a median wage of $9 an hour when you include tips. Considering that most of them are single parents, can they live on that?
So what’s the answer?
Several groups all over the country are fighting for the minimum wage to be raised to $15 an hour. If that goes through, restaurants will have to increase their prices and we would no longer have to tip the server or bartender. I worry about the quality of the service once they don’t have to work hard to earn it.
We have a favorite restaurant where the server does a fantastic job at making us feel welcome. He knows that we love the bread they serve and when we are getting ready to leave, he brings a bag with an extra loaf. That deserves consideration with the tip.
We also have made it a habit not to include the gratuity in the credit card charge because some restaurants tend to pass the percentage those credit companies charge to the establishments deducting it from the servers’ tip.
And if you cannot figure out how much to tip, add $2 for every $10 you spend and you’ll be playing it safe.
