Tipping

Tipping in the United States is customary because waiters are paid well below minimum wage. In other countries, tipping is not common because waiters are considered professionals and receive a salary.

How does the practice of tipping in the U.S. work? Generally, a 20% tip should be left for good service, 25% for excellent service, and 10% for poor service. Leaving nothing is unacceptable. If there is a problem, the patron should always speak with the manager/owner.

How do employers get away with paying below minimum wage? The Fair Labor Standards Act permits restaurant employers to pay a minimum of $2.13 per hour to an employee receiving tips. State minimums may be higher. The Department of Labor defines a tipped employee as someone "engaged in an occupation in which he or she customarily and regularly receives more than $30 a month in tips."

What happens if the server gets no or few tips? According to the Department of Labor, restaurant owners taking advantage of the tip credit must make up the difference to meet minimum wage requirements currently at $5.85.

To fully understand the impact of tipping, it is best to speak with a veteran. According to Erin Hayden, a former waitress with 10 years experience in the restaurant business as a server, the practice of receiving and sharing tips varies.

Ms. Hayden worked at four places including an Italian/American Bistro, a Country Club, a Steak House and an Italian Trattoria. She received the minimum wage allowed by employers claiming the tip credit plus tips at all of the establishments except the Country Club. At the Country Club, she was paid $9/hour with each bill automatically incurring a 10% gratuity of which she received none. At the Italian/American Bistro, Ms. Hayden tipped out 10% to the bartender and likewise at the Country Club if a private party hired a bartender. The Steak House required that 10% be tipped to the bartender and busboy; all tips were entered into a computer once a table was cleared. If she forgot to enter the tip amount, 15% was automatically assumed. Tips were pooled at the Italian Trattoria and equally divided at the end of the evening amongst wait staff, busboys, bartenders and the manager.

In all of Ms. Hayden's experiences, the kitchen staff did not share in any of the tips. Her pay stubs reported direct wages and tips separately. She was taxed within her appropriate income bracket.

What she learned was that servers prefer cash tips. If leaving a cash tip, cross out tip section on credit card slip. Servers should always do the following: smile, greet, know the menu and wine list, get drink order within 5 minutes of seating, do not clear table until all patrons are finished eating or requested, be well groomed, be attentive but not annoying and report complaints about food to the manager and get item removed from tab. Patrons should always tip accordingly, even for small tabs, never leave less than a $5 tip. The final thing she learned was that people who appear to have more money tend to tip less.

Ms. Hayden, now a mom, waits and busses tables daily for her 2 year-old son, 12 year- old daughter, and husband who just happens to be in the restaurant/bar business. When she eats out, she always tips 20% and more if with her 2 year-old son who tends to be a more demanding and messy patron.