You walk into a café, searching for a drink to start your day. A matcha latte feels like a no–brainer, so you go for it, reluctantly swallowing the extra dollar for oat milk since you’ve run out of Lactaids. You insert your card, realizing you’ve spent $7 on a drink, and tell yourself this was a treat for the long week you’ve had (it’s only Tuesday morning). As you recalculate how much you can afford for lunch, the cashier awkwardly calls you back because you forgot something: “Do you want to add a tip?”
Now, with the proliferation of swiveling iPads (a vessel of “tip creep”), there is almost no payment transaction in the U.S. that doesn’t involve tipping, which even includes self–checkouts. And people have noticed it. “Tipflation” surged during the pandemic as a means to support service workers and businesses. But it has persisted since then, leaving two–thirds of Americans feeling “tip fatigue”—the frustration of being expected to tip everywhere. The old excuse of “not carrying cash” no longer applies, thanks to the rise of electronic tablet–based payment systems, like Square, Toast, and Clover, at store checkout counters.
The absence of tip jars also creates tipping uncertainty. It's a natural human instinct to follow what other people are doing. So, many customers refer to how full the tip jar is—hence the reason many service workers fill their own jars—a.k.a. “salting the tip jar”—to encourage tipping. But when you’re asked for money in an information vacuum, what do you do? Do you be a good customer or save the two extra dollars you already spent on an overpriced coffee? For those who give in, it’s often because they don't want to appear cheap to the service worker even if they didn’t receive much service. And, with an employee inches behind the screen, customers may feel guilty for clicking “no tip.” After all, with the iPad tip prompts, you must actively opt out (sins of commission suck)—which is why 56% of Americans feel compelled to tip during tablet checkouts.
Businesses have taken advantage of this pressure with bigger–than–usual tips—20%, 25%, 30% of the purchase—as the default options on payment screens, hoping that overwhelmed customers will select the predetermined choices instead of “custom tip” (TL;DR it works). Though a 20% tip is generally considered standard for a “good job,” it can also be the minimum expected amount, leading to uncertainty about what is actually appropriate.
The tipping interaction tends to be awkward for the confused customer, but what’s it like for the worker behind the screen? Well, in the U.S., many tipped workers, like restaurant servers, receive a minimum wage of sub–$2.13 per hour, with the expectation that tips will make up the difference for the hourly federal minimum wage, which is $7.25 and very much not livable. Employers are required to compensate for the minimum wage if tips fall short. But, this doesn’t always happen. In the ten most populous American states, 2.4 million workers lose about $8 billion per year—an average of $3,300 per worker—from wage theft, which is when an employer doesn't pay an employee for what they are legally owed.
With inflation raising prices, businesses are trying to cut costs and keep prices steady for customers (though I swear my coffee is only becoming more expensive). Thus, workers are increasingly depending on tips to make ends meet. That’s why it can be demoralizing when a customer who can splurge at a café every morning can’t spare a few dollars for the barista who depends on tips.
So, when are you supposed to tip? There’s no clear answer. However, there are some general “tips” (ha) from the Emily Post Institute that can guide you. Service providers—including restaurant servers, personal care (barbershops, nail salons, etc.) professionals, and rideshare app drivers—are expecting a tip. Tips at quick–service—which don’t offer traditional wait service—and self–checkouts tend to be more discretionary. However, if your order is complicated or you’re a regular customer, it's highly suggested that you tip. Regardless of the circumstances, it's important to remember that tips aren’t just bonus money for employees, but are often lifelines to live off of their paychecks. That being said, try to be generous when possible.
Unless businesses start paying their employees livable wages that exclude tips (as if), I’d recommend factoring tips into your budget, especially for the cafés, restaurants, and salons you most frequent. Tips are only expected to become more ubiquitous, and with that, more confusing. So, the “tipping point” for tips likely isn't coming anytime soon. But, at least you won’t have to carry extra cash!
