Modifying tips according to state laws
#31

Join Date: Sep 2002
Location: Orlando, FL, US
Programs: DL-Dirt Medallion;US-Cast Iron Preferred
Posts: 3,617
Most of us know that federal minimum wage is $2.13/hour for tipped employees. They are expected to make up the difference between that and the standard minimum wage of $7.25 through tips. (If they do not, then the employer is required to fill the gap, but such employees will usually be let go.)
If we get really good service, we try very hard to tip in cash, and to split it up so part of it can be held back (ie, a ten buck tip is given as two fives or a five and five ones in cash and not noted on the CC receipt). The servers, if they're smart, know exactly why we've done it.
On a related topic, it's worth noting too that many or most restaurants keep their servers part time to avoid having to give bennies.
#32
Join Date: Sep 2003
Location: CLT
Programs: Choice Hotels/FFOCUS
Posts: 7,259
Slightly off topic but still on tipping. What about shuttle bus drivers to & from the airport(off airport parking) ? The driver is friendly helps with your luggage or offers. What about this person, do you tip & if so how much ?
#34
Join Date: Sep 2003
Location: CLT
Programs: Choice Hotels/FFOCUS
Posts: 7,259
#35

Join Date: Sep 2002
Location: Orlando, FL, US
Programs: DL-Dirt Medallion;US-Cast Iron Preferred
Posts: 3,617
Thanks for the reply. That sounds good. For those who don't know I'm retired from the airlines in Aug after approx. 34 years & I'm now driving one of these vans 3 days a week. I've never before worked in an industry that involved tipping. Honestly it's a fun job for me that I enjoy. I'm just finding that most people don't tip no matter what I do. And then once in a while I get those that are to generous 

I found people tended to tip better when the bus wasn't crowded, and especially if no other riders were around to see them tip.
#36
Join Date: Sep 2003
Location: CLT
Programs: Choice Hotels/FFOCUS
Posts: 7,259
I drove a car rental shuttle for a few months back in my college days. My experience is that most people don't tip, the ones that did were usually the ones who needed help with luggage, but many of those didn't either. My feeling was that I didn't really expect tips, but was grateful when I got them. Some of the other guys were more aggressive almost standing there with their hands out.
I found people tended to tip better when the bus wasn't crowded, and especially if no other riders were around to see them tip.
I found people tended to tip better when the bus wasn't crowded, and especially if no other riders were around to see them tip.
#37
Join Date: Jan 2013
Location: The lower of the two Carolinas
Programs: Former AA Gold, SkyMiles, Hilton HHonors, SPG Gold, Hyatt Diamond
Posts: 387
Is it really common for restaurants to withhold CC tips like this? Where my daughter works, they are paid cash at the end of the shift for CC tips.
Servers certainly appreciate cash tips as they tend to not get reported on W-2s, but I don't think they really care if you give them a tenner vs. breaking it up into smaller bills. Cash tips aren't reported for each transaction, they are (under)reported at the end of the shift.
On a related topic, it's worth noting too that many or most restaurants keep their servers part time to avoid having to give bennies.
Servers certainly appreciate cash tips as they tend to not get reported on W-2s, but I don't think they really care if you give them a tenner vs. breaking it up into smaller bills. Cash tips aren't reported for each transaction, they are (under)reported at the end of the shift.
On a related topic, it's worth noting too that many or most restaurants keep their servers part time to avoid having to give bennies.
I always split the tip so part is held back and part is reported - because the manager definitely has a general idea of how much should be circulating out there. So if I can assist in their underreporting at the end of the shift so be it - if the service was overly stellar.
And to the other poster: the IRS is as corrupt as Congress and I shall despise them as such.
#38




Join Date: Jul 2001
Location: London, England.
Programs: BA
Posts: 8,777
Yes, I've brought this bag 5,000 miles today through all sorts of transport and facilities. Why do you feel I can't manage the three steps from bus door to rack ?
#39
Original Poster
Moderator: Manufactured Spending



Join Date: Jul 2011
Posts: 6,707
Hello, OP here. Thanks for all the responses, everybody.
I'm surprised there is a consensus that you should not modify tips according to state law. This type of consensus is very rare on Flyertalk! Here is the reasoning that led me to ask this question:
First things first, I hate the custom of tipping and I wish it would go away. But I realize that it is reality. In most cases, states assume that certain workers will receive a certain amount of tips, and modify their labor laws accordingly for those workers. Therefore, despite my dislike of the system, if I don't tip then I am cheating these workers of their wages.
However, in states that do not have a lower minimum wage for tipped employees, this logic no longer holds. Servers are entitled to the same wages and benefits as untipped workers. If a cashier can get by on this salary, it should be "enough" for this type of work. Therefore, by not tipping, I am not cheating anyone of their wages. Tips for these workers are a bonus, as they should be.
Based on this logic, over the last year or so I have started tipping less (around 10-15%) when traveling in the states I listed in the OP, and more (20-25%) in the rest of the country. When the minimum wage for restaurant workers ranges all the way from $2.13 to over $9, I think this is fair.
I'm surprised there is a consensus that you should not modify tips according to state law. This type of consensus is very rare on Flyertalk! Here is the reasoning that led me to ask this question:
First things first, I hate the custom of tipping and I wish it would go away. But I realize that it is reality. In most cases, states assume that certain workers will receive a certain amount of tips, and modify their labor laws accordingly for those workers. Therefore, despite my dislike of the system, if I don't tip then I am cheating these workers of their wages.
However, in states that do not have a lower minimum wage for tipped employees, this logic no longer holds. Servers are entitled to the same wages and benefits as untipped workers. If a cashier can get by on this salary, it should be "enough" for this type of work. Therefore, by not tipping, I am not cheating anyone of their wages. Tips for these workers are a bonus, as they should be.
Based on this logic, over the last year or so I have started tipping less (around 10-15%) when traveling in the states I listed in the OP, and more (20-25%) in the rest of the country. When the minimum wage for restaurant workers ranges all the way from $2.13 to over $9, I think this is fair.

