In a recent survey by CreditCards.com, sit-down restaurant diners who say they “always tip” have gone down two percentage points since 2019. The poll also found that the younger the generation, the less likely they are to tip. While none of us are going to single-handedly make up for that shortfall with a particularly generous tip, now is hardly the time to make tipping missteps. Here’s some guidance to bear in mind. In some states, servers are paid an hourly wage of somewhere between $2 to $3 per hour, while in others, like California, the hourly pay can be as high as $14 per hour. But California, along with Oregon and Washington, represent a rare exception. In the vast majority of the nation, tips continue to make up a large portion of the server’s salary—43 states continue to allow tipped workers to be paid a subminimum wage. “Tips can constitute over 60 percent of a server’s total earning,” according to TableAgent. “Servers are paid based on a reward system: the person receiving the service can pay the server according to the quality of their performance. The better service the server provides, the more they are tipped,” advises TableAgent. If the service you experienced was sub-par, you may be tempted to send a message by decreasing the tip. But TableAgent notes that this approach will not fix the problem. Instead, consider speaking with someone of authority at the restaurant. When serving a large group, it’s not unusual for restaurants to add an automatic gratuity. Often this applies to parties of six or more, says TableAgent. In such cases, the gratuity applied by the restaurant may be about 18 percent. If you are dining with a large party, it’s a good idea to ask the restaurant in advance what its policy is. However, if you want to be particularly generous, you can use the cost of the total bill, inclusive of tax, to calculate the tip, says TableAgent. “Servers have to pay tax on their tip as well as share the tip with other support staff members. Many people feel that giving tip after the tax amount is fair, ensuring that their server receives a larger amount,” the website explains. Workers in the service industry rely on tips to make a living, and the best practice is this: If you plan on eating out, also plan on tipping. Period.
