I read your column about tipping, and I’m glad you’ve decided to stop tipping altogether, except when eating at restaurants. Is it fast food or a coffee shop? No more. I am a tradesman and earn an income while paying for tools, vehicles, and years of training. I have to work, so if someone offers me a tip, I decline it. It’s the economic world’s way of saying that a low-paying job is a way to get a better job. The more places you ask, the less likely you are to tip. The spread is unstoppable. am i wrong?
Everything turned upside down
Dear faller
You are wrong on an important point. It is wrong to blame workers for low-wage jobs.Especially considering that many of the lowest-paying jobs are also the most labor-intensive and arduous. cooking foodservice industry, leisure, hospitality industry, education and health services. As millions of people have discovered during the pandemic, these jobs form the backbone of the U.S. economy. Not all workers in low-wage jobs demand tips, and tarring them all with that brush does a disservice to millions of people.
According to one study, there are approximately 30 million low-wage workers in the United States who are in their prime and earn less than $16.98 an hour. recent reports From Workrise. WorkRise is a platform hosted by the Urban Institute, a Washington, DC-based think tank dedicated to identifying and sharing ideas to transform the labor market. “In total, low-wage workers make up more than a quarter of the total workforce,” the report says. “These jobs are often the most important Experience it yet minimum security”
“By that standard, a full-time worker would earn about $35,000 a year,” WorkRise reports. “In America’s three largest cities, the average annual rent for a one-bedroom apartment accounts for at least half of that amount.” Then, when you factor in utilities, groceries, and other necessities, it costs these workers It’s clearly not an easy life. Less than a quarter of low-wage workers participate in occupational pension plans, compared to 47% of high-wage workers, who are covered by employee-paid health insurance plans. Only 57% of people have coverage, while 88% of high-income earners do not.
confuse two issues
One survey found that more than 70% of Americans expect to tip more often than they used to, but only one-third say they know when and how much to tip. It is said that he stayed at recent research By Pew Research Center. The mistake is not, for example, that big companies don’t treat their workers better or create opportunities for them to improve their skills and climb the career ladder, but instead blame their dissatisfaction on workers’ low wages. That’s what you end up doing.
When Pew surveyed 12,000 Americans about their tipping habits, 57% said they tip 15% or more for the average meal at a sit-down restaurant. You will be happy to do so too. So far, so good. Additionally, 77% of those surveyed said the quality of service they received is a major factor in deciding whether and how much to tip. That’s why they call it a chip. No one forces you to tip 15% or 20% for shoddy service, as is often the case in big cities like New York or Los Angeles.
Waitstaff typically rely on tips to supplement their income and pay rent. Whether or not you agree with this practice, their wages often take into account the fact that they receive tips from customers.federal minimum standards $2.13 per hour Following the tipped employee, More than a dozen states. Writing a big fat zero where the tip should be doesn’t change that. I’m glad they don’t intend to punish the employees for the recent spike in requests for tips at ice cream and donut shops.
blame low wage workers
The problem is, when people ask for a tip when buying a $7 cup of coffee or donating to charity, some people freak out and use that experience as an excuse to stomp their feet and say they’ll never tip again. is. Workers pay the price, not the companies that sell or use digital fall protection screens. It’s not always clear whether such tips will be passed on to employees or whether they will instead be collected as some kind of opaque service charge.
The average annual salary for U.S. wait staff was $33,020 last year, according to the Bureau of Labor Statistics. That’s $15.87 per hour. However, in 2022, 10% of waitstaff earned $8.77 an hour and 25% earned $10.49 an hour. In some states, Including New York Restaurants are allowed to pay less than the minimum wage if tips make up the difference. We recommend that you familiarize yourself with the laws in your state before assuming that a service employee is defrauding you of your money.
Fast food workers and baristas are more likely to earn their state’s minimum wage than rely on tips, so there is no requirement to tip them. To help you with your decision-making, my colleague, MarketWatch reporter Nicole Pesce, has put together a guide to how much we should all tip, or how much we can tip. She also lists professions where accepting tips is considered unethical. Such occupations include civil servants, lawyers, law enforcement officers, nurses, postal workers, teachers, therapists, and more.
When deciding whether to tip, put yourself in the shoes of the person you serve.
Other works by Quentin Fottrell:
I want my younger brother to inherit my property. I have three other siblings. Do I need a lawyer? What could go wrong?
I don’t want to leave my financially irresponsible daughter alone at home. Is that unreasonable?
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If you have financial and ethical questions, you can email The Moneyist at qfottrell@marketwatch.com. You can also follow Quentin Fottrell on X, the platform formerly known as X. twitter. Monetarists regret that they cannot answer questions individually.
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