Are You Confused By New Tipping Culture? Here’s What To Know About Adding Gratuity
Written by
Karen Doyle
Edited by
Daria Uhlig
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The pandemic changed everything, including how Americans tip. Pre-pandemic tipping was usually reserved for in-restaurant dining, taxis and salons. But suddenly, you were getting the “option” to tip for the cup of coffee you ordered at the counter or drive-through and drank in your car.
If you are confused about tipping — when, to whom and how much — you’re not alone. Here’s what you need to know about current tipping culture.
Tipping Is Still (Usually) Optional
Just because you’re asked for a tip doesn’t mean you need to give one. It used to be that tipping was a way to do two things: provide a living wage for workers who made very little per hour and relied on tips for the bulk of their living, and to reward good service.
Today, tips are requested even when workers are making at least minimum wage without tips, and where little or no service is actually provided. In these situations, tipping is optional. When the barista swings that screen your way, you can always tap the “no tip” option. There’s no shame in that, although some people wonder if they’ll be punished in the form of slow service or a poorly made latte. If that happens, it’s time to find a new coffee shop.
If you are being asked to tip prior to the service being provided (e.g., when you order your coffee but before you receive it) it’s a pretty good indication that tipping is optional.
When Tips Are Expected
In some cases, a tip is traditionally expected, and prices and wages are adjusted accordingly. This can include salon and spa services, sit-down restaurant service and cab or rideshare trips. In these cases, a 20% tip is customary — any more or less is considered to be a reflection of the service. Note that these tips are given after you have received the service so you know what size tip is warranted.
Tipping: Cash or Card?
Many workers — and businesses — prefer tips in cash. By tipping in cash, the business avoids paying the credit card surcharge on the tip. Workers who receive cash tips get them the same day, which can be an advantage. Note that tipped workers are expected to keep track of tips and pay taxes on the money they receive.
Tipping has gotten more complicated lately, but the bottom line is, be prepared to tip if you receive good service. And if you can’t afford to tip in a place where it’s expected, go to a less expensive place. Many workers depend on tips for a living wage.
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