Seattle’s restaurant minimum wage hike to $20.76 per hour has raised questions about tipping. Many believe that with the higher wages, the need for tipping is reduced.
However, experts say it’s still essential to tip servers who earn above a certain threshold. According to Nina Mast, an economic analyst at the Economic Policy Institute, tipped workers often experience poverty and are vulnerable to wage theft and harassment. By building a 15% to 20% tip into meal costs, diners can help ensure servers receive a decent income.
The average hourly wage for leisure and hospitality workers in the US is $22.55, with tipped workers earning significantly less. In some regions, like the South, tipped workers are paid as little as $2.13 an hour.
While some restaurants may struggle with high costs, diners can still make a difference by tipping fairly. A survey found that 17% of restaurants fail in their first year, but this is often due to factors beyond labor costs.
Ultimately, building a larger tip into meal costs can help level the playing field for tipped workers and ensure they receive fair compensation for their work.
Source: https://www.marketwatch.com/story/why-should-i-tip-servers-who-earn-20-an-hour-b68832f5