Tips vs wages

[Philosophy Explorer]

Which way would be a better way of doing business for employers and employees?

PhilX

[Sir-Sister-of-Suck]

If we did do away with tips, the competitive wage would need to go up for something like food servers in order to incentive them, but it would mean that the prices of restaurant food would also go up collectively, because every restaurant would be doing it. Some that have done away with tips have just lazily added a 'flat service charge' that acts as the same thing. Except you're required to pay it, unlike a tip.

So, as much as people complain about having to 'donate because a company won't pay their employee,' it's the better option out of a bad batch because otherwise you'd just have to deal with a more expensive service. Right now, you, as an individual, can choose to not give a tip but be rest assured on the good will of everyone else to. So if you wish to continue being a grouch, you're free to still enjoy all the benefits.

But the tips gained are definitely more than the wages they would otherwise receive. Companies would pay their employees the most optimum amount just to maintain an incentive. With the way it is right now, waiters and waitresses have the potential to make far more.

And I do realize there are other tipped jobs, the last thing more or less applies to all of them, though.

[Philosophy Explorer]

If we did do away with tips, the competitive wage would need to go up for something like food servers in order to incentive them, but it would mean that the prices of restaurant food would also go up collectively, because every restaurant would be doing it. Some that have done away with tips have just lazily added a 'flat service charge' that acts as the same thing. Except you're required to pay it, unlike a tip.

So, as much as people complain about having to 'donate because a company won't pay their employee,' it's the better option out of a bad batch because otherwise you'd just have to deal with a more expensive service. Right now, you, as an individual, can choose to not give a tip but be rest assured on the good will of everyone else to. So if you wish to continue being a grouch, you're free to still enjoy all the benefits.

But the tips gained are definitely more than the wages they would otherwise receive. Companies would pay their employees the most optimum amount just to maintain an incentive. With the way it is right now, waiters and waitresses have the potential to make far more.

And I do realize there are other tipped jobs, the last thing more or less applies to all of them, though.

To point out, it's often in the news about proposals to raise the minimum wage to $15/hour. Some workers would lose their jobs at that rate. Tips would seem to be a better system for employers and employees as it would be more compatible to market conditions as it would screen out the poorer workers more efficiently.

PhilX

[Dalek Prime]

I have a lot of problems with tipping. It's passing the buck to me to pay someone else's wages, while I don't get to claim it as an expense, which the business does. If I'm paying the wage, I should also have the ability to hire and fire the people I'm paying. And I don't get to control who the tip goes to anyway.

Having said that, I do tip, overly well. I'm clearly a born sucker.

[Philosophy Explorer]

I have a lot of problems with tipping. It's passing the buck to me to pay someone else's wages, while I don't get to claim it as an expense, which the business does. If I'm paying the wage, I should also have the ability to hire and fire the people I'm paying. And I don't get to control who the tip goes to anyway.

Having said that, I do tip, overly well. I'm clearly a born sucker.

Would it help you if a sign said the employees were
nonsalaried? At Great Clips, they ask me who I would like to cut my hair. And you do normally have a choice as to who services you DP, or use a different business.

PhilX

[Dalek Prime]

I have a lot of problems with tipping. It's passing the buck to me to pay someone else's wages, while I don't get to claim it as an expense, which the business does. If I'm paying the wage, I should also have the ability to hire and fire the people I'm paying. And I don't get to control who the tip goes to anyway.

Having said that, I do tip, overly well. I'm clearly a born sucker.

Would it help you if a sign said the employees were
nonsalaried? At Great Clips, they ask me who I would like to cut my hair. And you do normally have a choice as to who services you DP, or use a different business.

PhilX

The other business still has tipping. Not much of a choice.

[Philosophy Explorer]

I have a lot of problems with tipping. It's passing the buck to me to pay someone else's wages, while I don't get to claim it as an expense, which the business does. If I'm paying the wage, I should also have the ability to hire and fire the people I'm paying. And I don't get to control who the tip goes to anyway.

Having said that, I do tip, overly well. I'm clearly a born sucker.

Would it help you if a sign said the employees were
nonsalaried? At Great Clips, they ask me who I would like to cut my hair. And you do normally have a choice as to who services you DP, or use a different business.

PhilX

The other business still has tipping. Not much of a choice.

I don't understand. Choice between what?

PhilX

[Dalek Prime]

Choice between businesses.

[Philosophy Explorer]

Choice between businesses.

Then you just shop further as you would normally do (e.g. ask a friend). Seek a business with salaried employees if that's your wish (ofc there are other things you can do).

PhilX

[Dalek Prime]

Choice between businesses.

Then you just shop further as you would normally do (e.g. ask a friend). Seek a business with salaried employees if that's your wish (ofc there are other things you can do).

PhilX

Which restaurants don't have tipping? Besides cafeterias? Not a practical suggestion.

But I was speaking on how I feel about tipping anyway, not how I can avoid it. Because I can't. It still doesn't change the fact that it puts the onus on me to pay someone else's employee to work, when I wasn't the one who offered them the job. It's externalizing the business owners expense.

[Philosophy Explorer]

Choice between businesses.

Then you just shop further as you would normally do (e.g. ask a friend). Seek a business with salaried employees if that's your wish (ofc there are other things you can do).

PhilX

Which restaurants don't have tipping? Besides cafeterias? Not a practical suggestion.

But I was speaking on how I feel about tipping anyway, not how I can avoid it. Because I can't. It still doesn't change the fact that it puts the onus on me to pay someone else's employee to work, when I wasn't the one who offered them the job. It's externalizing the business owners expense.

Which restaurants don't have tipping? That's for you to find out as I've seen that before. Just call up and ask.

PhilX

[Dalek Prime]

Then you just shop further as you would normally do (e.g. ask a friend). Seek a business with salaried employees if that's your wish (ofc there are other things you can do).

PhilX

Which restaurants don't have tipping? Besides cafeterias? Not a practical suggestion.

But I was speaking on how I feel about tipping anyway, not how I can avoid it. Because I can't. It still doesn't change the fact that it puts the onus on me to pay someone else's employee to work, when I wasn't the one who offered them the job. It's externalizing the business owners expense.

Which restaurants don't have tipping? That's for you to find out as I've seen that before. Just call up and ask.

PhilX

It's industy-wide, hence minimum wage is lower for hospitality.

Heck, while I'm at it, I may as well look for gratis restaurants. :/

[Sir-Sister-of-Suck]

To point out, it's often in the news about proposals to raise the minimum wage to $15/hour. Some workers would lose their jobs at that rate.

It certainly seems to in Puerto Rico, where all the jobs are forced to oblige by the federal minimum, and when we scale that to their local economy, it comes pretty close to $15 an hour.

But the real issue is competitive pricing. The progressives who harp on about how a $15 minimum wage would only raise the price of goods by a few cents, are referencing numbers which only consider the amount needed to break a profit. They don't consider competition and other factors under that like the loss of sales at higher prices.

[Sir-Sister-of-Suck]

Choice between businesses.

Then you just shop further as you would normally do (e.g. ask a friend). Seek a business with salaried employees if that's your wish (ofc there are other things you can do).

PhilX

Which restaurants don't have tipping? Besides cafeterias? Not a practical suggestion.

A few places are doing it around the states.

But I was speaking on how I feel about tipping anyway, not how I can avoid it. Because I can't. It still doesn't change the fact that it puts the onus on me to pay someone else's employee to work, when I wasn't the one who offered them the job. It's externalizing the business owners expense.

Companies would find a way to cover the loss from getting rid of tips, anyway. This way, you technically have an option to do it, and if you do it's a nice gesture to be able to put it directly in their hands.