Tip
Encyclopedia
Convention (norm)
A convention is a set of agreed, stipulated or generally accepted standards, norms, social norms or criteria, often taking the form of a custom....
. Tipping varies among cultures and by service industry. Though by definition a tip is never legally required, and its amount is at the discretion of the patron being served, in some circumstances failing to give an adequate tip when one is expected is a serious faux pas
Faux pas
A faux pas is a violation of accepted social norms . Faux pas vary widely from culture to culture, and what is considered good manners in one culture can be considered a faux pas in another...
, and may be considered very miserly, a violation of etiquette
Etiquette
Etiquette is a code of behavior that delineates expectations for social behavior according to contemporary conventional norms within a society, social class, or group...
, or unethical. In some other cultures or situations, giving a tip is not expected and offering one would be considered at best odd and at worst condescending or demeaning. In some circumstances, such as with U.S. government workers, receiving of tips is illegal.
Etymology
There are common inaccurate claims that "tip" (or "tips") is an acronym for a phrase such as "To Insure Prompt Service", "To Insure Proper Service", "To Improve Performance", "To Inspire Promptness" or "To Insure Promptness." These false backronymBackronym
A backronym or bacronym is a phrase constructed purposely, such that an acronym can be formed to a specific desired word. Backronyms may be invented with serious or humorous intent, or may be a type of false or folk etymology....
s contradict the verifiable etymology, as follows.
According to the Oxford English Dictionary
Oxford English Dictionary
The Oxford English Dictionary , published by the Oxford University Press, is the self-styled premier dictionary of the English language. Two fully bound print editions of the OED have been published under its current name, in 1928 and 1989. The first edition was published in twelve volumes , and...
, the word tip originated as a slang term, and its etymology is unclear. The term in the sense of "to give a gratuity" first appeared in the 18th century. It derived from an earlier sense of tip, meaning "to give; to hand, pass", which originated in the rogues' cant in the 17th century. This sense may have derived from the 16th-century tip meaning "to strike or hit smartly but lightly" (which may have derived from the Low German
Low German
Low German or Low Saxon is an Ingvaeonic West Germanic language spoken mainly in northern Germany and the eastern part of the Netherlands...
tippen, "to tap"), but this derivation is "very uncertain".
Circumstances
In countries where tipping is expected (the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
for example), complicated unofficial standards and customs have developed over the exact percentage to tip, and what should and should not be included in this calculation. In other cultures where tipping exists it is more flexible and no specific assumptions of the tip amount exist.
In countries where tipping is the norm, such as the United States, some employers pay workers with the expectation that tips will make up the difference. The practice of tipping is controversial, with numerous criticisms. Some have criticized the inherent "social awkwardness" in transactions that involve tipping, the inconsistency of tipping for some services but not similar ones, and the irrationality of basing tips on price, rather than the amount and quality of service (a customer pays a larger tip to a server bringing him a lobster rather than a hamburger, for example).
A number of economists have suggested that tipping is economically inefficient. A paper by Yoram Margalioth of Tel Aviv University
Tel Aviv University
Tel Aviv University is a public university located in Ramat Aviv, Tel Aviv, Israel. With nearly 30,000 students, TAU is Israel's largest university.-History:...
argued that there was a negative externality associated with tipping. The paper also opposes tipping based upon the author's opposition to tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
.
Ian Ayres, Fredrick E. Vars & Nasser Zakariya published a paper suggesting that tipping contributed to racial prejudice, since ethnic minorities would often be less able to pay a large tip. Two other American studies have contributed to the thesis that tipping is racially discriminatory, finding that ethnic minority servers and taxicab drivers received lower tips on average than their white counterparts. In the study of the servers, an attempt by the author to isolate other possible contributing factors, such as poor service, found that "After controlling for these other variables … the server race effect is comparable across customer race."
A study from a Cornell University
Cornell University
Cornell University is an Ivy League university located in Ithaca, New York, United States. It is a private land-grant university, receiving annual funding from the State of New York for certain educational missions...
professor concluded that "consumers' assessments of the quality of service correlate weakly to the amount they tip," relying more on superficial factors such as the attractiveness of the server or the amount of the bill.
Tipping may not be expected when a fee is explicitly charged for the service. For example, a service charge is often added to bills in restaurants and similar establishments. It may be described as "optional", but is very often considered by the establishment and diners as almost obligatory. A tip is expected on top, sometimes by not emphasising that a service charge has been levied.
Bribery and corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
are sometimes disguised as tipping. In some places, police officers and other civil servants openly solicit tips, gifts and dubious fees using a variety of local euphemisms.
China
In ChinaChina
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, traditionally there is no tipping (except Hong Kong and Macau, both semi-westernized areas). However, hotels that routinely serve foreign tourists may allow tipping. An example would be tour guides and associated drivers.
India
In IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, tipping in restaurants and bars is expected if you are a regular, but generally there is no tipping.
Israel
In IsraelIsrael
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
, tipping in restaurants and bars is expected, usually 10%-12% service charge.
Japan
In JapanJapan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, tipping is not a part of the culture. Japanese people are uncomfortable with being tipped, and are likely to be confused, amused or possibly even offended if tipped.
Jordan
In JordanJordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
, tipping is part of the culture, and it has always been used in restaurants, hotels, taxies, Hookah lounge
Hookah lounge
The hookah lounge is an establishment where patrons share shisha from a communal hookah or nargile which is placed at each table....
s, coffee shops and bars, and it is expected if you are a regular, though bars and restaurants may add 5-35% service charge.
It is referenced as tip or Ba'sheesh
Baksheesh
Baksheesh is a term used to describe tipping, charitable giving, and certain forms of political corruption and bribery in the Middle East and South Asia...
(Arabic: ْبقشيش), which used to be given to labor workers in advance to get better service, or afterwards as an extra reward for their work.
Giving a tip is not accepted in situations like at work, or in public and government offices, the police or the military members, it is an insult to offer someone a tip for any these places, and it is illegal.
Singapore
In SingaporeSingapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, tipping is not considered the norm, though bars and restaurants may add a 10% service charge. It is prohibited at the airport, and discouraged at hotels and restaurants, where a 10% service charge is included in the bill.
Tipping is not the norm in taxis; although congestion or ERP charges are often included in the final fare. All taxis must advertise a hotline to call if the customer is dissatisfied.
South Korea
In South KoreaSouth Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, tipping is not customary at restaurants, hotels or for taxi service. When dining at restaurants, customers may sometimes receive complimentary food or drinks from the owner or server; colloquially, this is known as "service". Even in this circumstance tipping is not customary. Some foreign food restaurants and hotels add a 10% service charge
Taiwan
In TaiwanTaiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
tipping is rare except when a customer uses a porter at an airport, which is usually 50 New Taiwan dollar
New Taiwan dollar
The New Taiwan dollar , or simply Taiwan dollar, is the official currency of the Taiwan Area of the Republic of China since 1949, when it replaced the Old Taiwan dollar...
s per item of luggage, or wants to show appreciation for exceptional service. Some restaurants and hotels add a 10% service charge.
Turkey
In TurkeyTurkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
, tipping, or bahşiş (lit. gift, from Persian
Persian language
Persian is an Iranian language within the Indo-Iranian branch of the Indo-European languages. It is primarily spoken in Iran, Afghanistan, Tajikistan and countries which historically came under Persian influence...
word بخشش, often rendered in English as "baksheesh") is usually optional and not customary in many places. However, a tip of 5-10% is expected in restaurants, which is usually paid by "leaving the change". Cab drivers usually do not expect to be tipped, though passengers may round up the fare. A tip of small change may be made to a hotel porter.
Philippines
In the PhilippinesPhilippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
tipping is becoming more common especially in service-oriented places (spa, salon). However, in some restaurants and hotels a "service charge" of 8 to 12% is included in the bill; customers sometimes add a further "tip".
Australia
Tipping is not the norm in Australia, although in recent times it has become more common in restaurants and hotels, particularly in larger cities; even there it tends to be reserved to reward particularly good service. Tipping staff of any other kind of business is very unusual. CasinoCasino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
s in Australia—and some other places—generally prohibit tipping of gaming staff, as it is considered bribery. For example, in the state of Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...
, the Gaming Control Act 1993 states in section 56 (4): "it is a condition of every special employee's licence that the special employee must not solicit or accept any gratuity, consideration or other benefit from a patron in a gaming area."
New Zealand
Tipping is not a traditional practice in New Zealand. Although relatively rare and never expected where tipping does occur it is usually to reward a level of service that is significantly in excess of the customer's expectations, or as an unsolicited reward for a voluntary act of service. The tip may take the form of money, a gift or some other gesture designed to demonstrate gratitude.Argentina
Tipping is common in restaurants and bars, usually around 10% of the bill when happy with the service received. Leaving no tip when feeling dissatisfied is not uncommon, and the reason is understood. Many restaurants also levy a small fixed cover chargeCover charge
At bars and nightclubs, or restaurants with live entertainment a flat fee for entry, sometimes known as a cover charge, is made, in addition to payment for food and drink...
(cubierto; typically no more than 5 Argentine peso
Argentine peso
The peso is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using dollar currencies. It is subdivided into 100 centavos. Its ISO 4217 code is ARS...
s per person). Tips are also usually given for food delivery services and luggage carrying and loading/unloading from buses. Taxi drivers are not tipped.
It is customary to tip the ushers in theaters and opera houses if they hand out programmes.
Bolivia
Service charges are included with the bill. A tip of around 5% or so is sometimes given, and is considered polite.Brazil
Optional service charges of 10% are included at some restaurant bills, and additional tips are very rare. While tips can sometimes be given for some services, such as taxis, delivery or tourism, tips are very uncommon.Colombia
You decide how much you want to tip, otherwise they will charge 10%. Most of the times the restaurant doesn't share the full tip received in a month with their employees. White tourists might be expected to tip even more than 10%.Albania
Tipping (bakshish) in AlbaniaAlbania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
is very much expected almost wherever. In recent times it has become more common as many foreigners and Albanians living abroad visit Albania. Leaving a tip of around 10% of the bill is customary in restaurants; even porters, guides and chauffeurs expect tips. If you don’t want to leave money for porters, bellhops and the like, duty free alcohol is often very welcome- but this must be doled out with discretion, as some people may actually find it offensive. http://travelspedia.com/East-Europe/Albania/2344.html
Belgium
Tips (fooi) are not expected in BelgiumBelgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
. When tipping in pubs/restaurant, it will mostly be a simple round up to the nearest integer.
Croatia
Tips (napojnica, manča, tip) are expected mostly in restaurants, but not mandatory. Restaurant tip is around 10% (or more if you are really satisfied with overall dining experience). In clubs or cafe bars is common to "round up the bill". It's not common to tip taxi drivers or hairdressers (but it's up to you). In tourist country like Croatia, tip can "open a lot of doors" and surely you will leave good impression which will be recognised on your next visit.Czech republic
Tips (spropitné, dýško) are optional but welcome in taxis, restaurants and similar services. It is usually not more than few crowns rounding up the bill to nearest 10. Payments with credit cards are never tipped. According to Czech law, service must be always included in the bill, however the tip must not be. In Prague and some other cities often visited by the foreigners there are often adapted Western practices and tips about 10% are expected, but not required.Denmark
Tips (drikkepenge, lit. "drinking money") are not required in DenmarkDenmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
since service charges are automatically added to the bill. Tipping for outstanding service is a matter of choice, but is not expected.
France
Tips (pourboires) are not expected in France since service charges are included in the bill. However, French people usually leave the small change left after paying the bill or one or two euros if they were satisfied with the service quality.Germany and Austria
Tipping is not mandatory and tends to be reserved only to reward particularly good service. Tips of 5 to 10% (Trinkgeld, lit. "drink money") in Germany are commonplace, in restaurants and bars, sometimes with the comment 'es stimmt so' ('keep the change'). Or the total price including the tip is commented with; thus a price might be 10,50 € and a customer might, rather generously but not unusually, say 'zwölf' ('twelve'), pay 20 € and still get 8 € back. If you have to pay a small amount, it is common to round up to the nearest euro (e. g. 1,80 € to 2,- € even). Tips are free from taxation.Greece
In GreeceGreece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
tipping ("Φιλοδώρημα" , transl. filodórima, or the loanword "πουρμπουάρ" from French pourboire) is commonplace, but not mandatory. Usually an amount on top of the small change left after paying the bill is left on the table in restaurants or bars. There is no set formula as to the proper amount, but for a large bill the tip is usually larger as well. The setting is also a factor; for instance, dining at an upscale establishment would merit more consideration to the tip than simply having coffee at a café. Common tips for a fast-food delivery may be up to 1 or 2 euros, for a large restaurant order it may be up to 10 or 20 euros but usually not larger.
Iceland
In IcelandIceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
tipping (þjórfé, lit. "drink money") is not expected since a gratuity is already included in the bill. Icelanders themselves do not practice the tipping custom, but are familiar with it.
Ireland
Although it has been cited that tipping for taxis is typical, it is not common in practice. Commonly people will round-up the fare to the nearest note to avoid fumbling for small change(for example, hand over €5.00 for a fare of €4.50)In pubs, a tip is not generally left unless drinks are brought to the table by lounge staff, in which case tips are not obligatory, but are often given, at least by requesting the staff to keep some or all of the change.
Italy
Tips (la mancia) are not customary in Italy, and used only if a special service is given or to thank for a high quality service. Almost all restaurants (with the notable exception of Rome) have a price for the service (called coperto) and waiters do not expect a tip, but they will not refuse it, especially if given by foreign customers. In cafés, bars, and pubs it's however not uncommon, on paying the bill, to leave the change saying to the waiter or to the cashier "tenga il resto" ("keep the change"). Recently tip jars near the cash register are becoming widespread, however in public restrooms is often forbidden. Leaving the change is also quite common with taxi drivers. When using a credit card, it is not possible to add manually an amount to the bill, so it is possible to leave some coins as a tip.The Netherlands
Tipping is not mandatory or customary. Service is included in the given prices and rates, but leaving a tip is considered a kind gesture.Norway
Tipping is semi-expected in Norway and the tip is usually 10% of the bill. However, price rises in the 21st century have reduced the incidence of tipping, with the exception of restaurants (although there is also a service charge). Elsewhere than in restaurants and bars (e.g. taxis) it is usual to leave the change.Portugal
In Portugal tipping is mainly costumary in restaurants, taxis, food delivery services and home repair services. Tips are not given based on percentages and are usually small.Romania
The tip (bacşiş, from the Turkish) is usually 10% of the bill and is expected in restaurants, coffee shops, and taxis.Slovenia
Tipping is becoming a custom in Slovenia. Most tourists think that it is charged in the bill, but it never is. Recently, areas visited by a large amount of tourists have begun to accept tips at around 10 - 20%, which are more than welcome.Spain
Tipping ("propina") is not customary and not generally considered mandatory in Spain. In restaurants the amount of the tip, if any, depends mainly on the economic status of the customer and on the kind of locale, higher percentages being expected in upscale restaurants. In bars and small restaurants, Spaniards sometimes leave as a tip the small change left in their plate after paying a bill. Outside the restaurant business, some service providers, such as taxicab drivers, hairdressers and hotel personnel may expect a tipping in an upscale setting. In 2007 the Minister of Economy Pedro Solbes put the blame on the excessive tipping for the increase of the inflation.Switzerland
Tipping is not expected, although it is common for a customer to round-up the bill to the nearest franc for a small amount, or to add a couple of francs (certainly not 10%) to a larger bill.In most restaurants and bars, "service" as it's called, is included on the bill. Anything left in addition is a compliment for great service, but not expected.
Sweden
Tipping is commonly not expected but is practiced as a remark of high quality service or as a kind gesture. Tipping is most often done by leaving small change at the table or rounding up the bill.United Kingdom
It is not customary to tip for service at pubs. However bars (as distinct from pubs, for example cocktail bars) will often deliver change on a plate to a customer being served at the bar, and expect some or all of it to be left as a tip. Tips are usual for table service in either pubs or bars.Tips of 10% are common in restaurants but not expected. It is a legal requirement to include any taxes and other obligatory charges in the price. Service charges, which may be discretionary (although it is very unusual to refuse to pay) or mandatory, are sometimes levied, more often in London and other large cities than regional areas. It is legal to refuse to pay a mandatory service charge if the service was considered inadequate.
Tipping for other services such as taxis and hairdressers is not expected, but tips are sometimes given to reward particularly good service. Although in some large cities it is customary to tip both taxi drivers and hairdressers/barbers.
Taxation in the U.K.
A tronc is an arrangement for the pooling and distribution to employees of tips, gratuities and/or service charges in the hotel and catering trade. The person who distributes monies from the tronc is known as the troncmaster. When a tronc exists in the UK, responsibility for operating PAYE
PAYE
Pay as you earn or PAYE refers to a system of withholding of income tax from payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as determined on tax returns. PAYE may also refer to withholding of the...
on the distribution may lie with the troncmaster rather than the employer. (The word 'tronc' has its origins in the French for collecting box.) In June 2008, the Employment Appeals Tribunal ruled that income from a tronc cannot be counted when assessing whether a wage or salary meets the national minimum wage (see Revenue and Customs Commissioners v Annabel’s (Berkeley Square) Ltd
Revenue and Customs Commissioners v Annabel’s (Berkeley Square) Ltd
Revenue and Customs Commissioners v Annabel’s Ltd [2009] is a UK labour law case regarding the treatment of tips under the National Minimum Wage Act 1998...
[2009] EWCA Civ 361, [2009] ICR 1123)
Canada
Tipping rates in CanadaCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
are similar to those in the neighbouring United States.
Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
and Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
allow employers to pay lower minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
s to workers who would reasonably be expected to be receiving tips. In Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, the minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
is $10.25 per hour, with exceptions for students under 18 years old and employed for not more than 28 hours a week, who are paid $9.60 per hour; and both liquor and restaurant servers, who are paid $8.90 per hour. On April 13, 2010, the Toronto Star
Toronto Star
The Toronto Star is Canada's highest-circulation newspaper, based in Toronto, Ontario, Canada. Its print edition is distributed almost entirely within the province of Ontario...
reported that since 2009 it has become common for restaurant servers to give part of their tips to the business they work for.
Traditionally, owners of businesses and buffet staff are not tipped.
Workers who receive tips are legally required to report the income to the Canada Revenue Agency
Canada Revenue Agency
The Canada Revenue Agency is a federal agency that administers tax laws for the Government of Canada and for most provinces and territories, international trade legislation, and various social and economic benefit and incentive programs delivered through the tax system...
and pay income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
on it. In Quebec, the provincial government automatically taxes servers 8% of their sales whether a gratuity was received or not. In other provinces, however, many workers have been known to report no income from tips at all or, perhaps more commonly, to "lowball" the figure. In response, the CRA has said that it will closely check the tax returns of individuals who would reasonably be expected to be receiving tips to ensure that the tips are reported realistically.
United States
Tipping is a widely practiced social custom in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Standards vary, but generally, gratuities are given for services rendered in the restaurant, bar, and taxi industries. For most of the 20th century it was considered inappropriate for the owner of an establishment to accept any tips, and while this is still considered the standard etiquette rule, the practice has mostly vanished as tipping has become ubiquitous for certain types of services. This etiquette applies to bar service at weddings and any other event where one is a guest as well. The host should provide appropriate tips to workers at the end of an event.
Laws in the states of Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington require all employees to be paid at least minimum wage. However, it is still customary to give standard tips in those places. Elsewhere, wage laws allow employers to credit an amount of earned tips against the minimum wage, allowing them to pay tipped employees less than minimum wage. As of September 2009, this reduction can be as low as $1.45 per hour in West Virginia, or as high as 100% in Virginia, reducing potential wages to $5.80 or $0 per hour, respectively. Which employees may have their wages reduced varies as well. The Fair Labor Standards Act
Fair Labor Standards Act
The Fair Labor Standards Act of 1938 is a federal statute of the United States. The FLSA established a national minimum wage, guaranteed 'time-and-a-half' for overtime in certain jobs, and prohibited most employment of minors in "oppressive child labor," a term that is defined in the statute...
defines a tipped employee as anyone receiving more than $30 per month in tips, although several states set a lower $20 per month threshold.
Federal law requires that employees report 100% of tip income on their tax return, excluding any given months where total tip income was less than $20.
Restaurants
Tipping is customary in restaurants offering traditional table service. While the amount of a tip is ultimately at the discretion of the patron, the customary tip until the 1980s was from 10-15% of the total bill before tax, for good to excellent service, and since then has risen to 15-20% before tax. Tipping percentages may fall when the economy is poor.
Waiters, on average, fail to report at least 40% of their tips according to the IRS. An IRS audit triggered by major discrepancy between employee reported tip and credit card slips maintained by the business, it was discovered that employees of Fior D'Italia in San Francisco was significantly under-reporting their tip income. The average tip amount as discovered by IRS through calculating the average of credit card slips for year 1991 and 1992 were 14.4 and 14.29% respectively. In a 2003 auditing conducted in a research report under advise of faculty member Ron Worsham at Brigham Young University, found that the data collected from sample restaurants for report had an average tip percentage ranged from 13.57 to 14.69% between 1999-2002.
When a server has not adequately addressed issues a customer has with service, the patron may choose to speak with management to have the problems corrected before considering reducing the tip. In extreme cases of inferior service, the patron may choose not to leave a tip. Though not considered a standard practice, some dissatisfied customers go so far as to leave a very small tip, such as one penny, as a personal insult.
In certain situations, the restaurant may assess a gratuity to the bill automatically without customer input, which is called an "autograt." The most frequent reason for this is for large groups, such as six or more, which many restaurants as a matter of policy add a standard predetermined amount (~18%) that may be labeled as a gratuity or as a "service charge" in lieu of the gratuity. In less frequent cases, an autograt may be placed on every customer's bill. Reputable restaurants post their policy on a sign or the menu, or require servers to inform their patrons of such charges before they order. This charge can be verified by the customer on the bill to avoid tipping in addition to the service charge. Regardless of whether it is labeled a "service charge," it is still taxed by the IRS.
Legal cases have established that customers have a right to negotiate, alter, or refuse such automatic charges entirely, even if the policy is written on the menu. A customer may choose to include an extra tip for the server over and above the service charge, or, if service is poor, to negotiate an alternate service charge with management.
Many traditional restaurants offer carry-out ("pick-up," "take-out, or "curbside") service, and standards for tipping for such services vary. Tipping is not traditionally required for non-table services. Some advocate optional tipping in the case of exceptional service or difficult orders, while those working in the industry often promote 5-15% as appropriate.
Tipping at fast food restaurants and coffeehouses that do not offer table service is not necessary, despite the common proliferation of tip jars, which are considered inappropriate by many. Such tips may be divided amongst the on-shift staff (except for salaried management), whether or not such staff directly contributed to a patron's order.
Taxicabs
Most U.S. guides recommend 15% of the fare, more for extra services or heavy luggage.
Government employees
Under federal law it is considered bribery to tip federal government employees. However, they are permitted to receive unsolicited non-monetary gifts which are less than or equal to $20.00 in value.
Other
Many retailers forbid their employees to accept tips, although this is illegal in some states, such as California, where the law states that tips are the property of to whom they are given, and employers may not require employees to refuse tips or share their tips with anyone.
Taxation
In some jurisdictions, tipped workers qualify for a lower statutory minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
from the employer, and therefore may supplement deficient pay with tips. For example, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
(IRS) requires restaurant employers to ensure that the total tip income (both cash and tips added to credit or debit card receipts) reported to them during any pay period is at least eight percent of their total receipts for that period. If the reported total is below eight percent, employers must allocate as income the difference between the actual tip income reported and eight percent of gross receipts. Legally, tips should be reported as income for tax purposes by the recipient. Form 4070 is provided by the IRS
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
for the daily tracking of tip income by employees and the reporting of it to employers by the 10th of the month for the previous month's gratuities received.