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Monday, September 10, 2018

The Future Of Tipping - Every Solution Has Unintended Consequences

But that doesn't mean we should just stop and take things as they are.




































I started thinking seriously about tipping when we had breakfast in Talkeetna last May.  I read this sign and as we left, without leaving a tip, I mentioned the policy to the person taking our payment.  Who then started talking about some of the side effects.  For one thing, I asked about the legal obstacles to tipping mentioned in the sign.  (I think that was part of what held up this post - I didn't have much internet access when we were at Denali and didn't want to spend on legal research.)

Basically he said that they went to this policy - abolishing tips and raising prices - because only the wait staff could legally benefit from tips, and they didn't think that was fair.  Some of the issues he brought up included:

  1. The serious loss of income for the best servers.  People here on vacation or for climbing often have a lot of money and will tip a good server quite a bit, so when the policy was announced - after discussing it with everyone, if I recall right - some went to other restaurants were they could earn a lot more money through tips.  
  2. They had to raise prices to pay everyone minimum wage without tips.  I get that, but I also figured the difference wasn't that great and was probably what I would have paid in a tip anyway.  
  3.  Not everyone left tips and those people don't feel the way I do about the raised prices.  

This was last May and I can't find the notes I wrote down so I'll stop there.  I know I did want to look into the law, but I'm guessing that after several days at Denali, this slipped from my conscious todo list.

But Sunday, two things brought tipping back to my attention.  First, I got a thank you note for a tip I put into my check for a year of the Anchorage Daily News.  Our news carrier leaves our paper right  at our doorstep every day.  She doesn't throw it into the bushes or two steps from our door.  It's right there.  I can open the door barefoot and lean down and pick it up.  This is particularly appreciated in the winter.  How much should one tip a mail carrier?  My decision wasn't so much thinking about what she is paid, but more about saying, "Even though I've never seen you, I want you to know that I appreciate your great service."  Apparently I tipped her more than most others because she wrote the thank you.  Maybe it's just her route isn't full of fancy homes with high income earners.

She also noted in her thank you  - which was taped to the orange plastic bag the paper comes in - her appreciation that I was the only one of her customers who recycles the plastic bags.  I called the ADN once and asked about that, and they said to leave them outside and the carrier will pick them up.  Since then, I've been stuffing the new bag each day into one of the bags until the bag is
full.  Then I leave it out on the front steps - secured so it doesn't blow away - and in the morning it's gone.  I mention this so others who think about recycling plastic bags know you can do it this way.  (And the Assembly recently passed a law banning plastic bags at stores, but not for newspaper delivery.)  I'm not sure how they reuse the bags - since I'm sure it's easier to pull one off a role than to try to retrieve them out of a used bag, but knowing she thought that was a good thing and not a pain in the neck, was also positive.

Finally,  a Washington Post article reprinted  in the ADN Sunday about tipping and getting rid of tipping by requiring restaurants and hotels to pay the minimum wage not counting the tips.  It doesn't deal with the issue of losing servers (which wouldn't happen if a law were passed instead of one restaurant voluntarily making that decision).  Here's one snippet that I wanted to push back on a bit:
"Customers shouldn’t have to subsidize an employee’s wages through their tips, whether they’re ordering a pizza or taking a white-water rafting trip. And now, finally, it looks like we’re slowly reaching the point where we agree: This can’t go on."
My quibble here is the phrase "subsidize an employee's wages."  I'd argue we're subsidizing the owner's profit.  After all, the owner should be paying a fair wage.  And our tips, as important as they are, don't pay for health care or retirement.  And I want to acknowledge I know there are differences between small family owned restaurants and large corporate chain restaurants.

Of course, this is should all be in the larger context of the laws and customs that favor the educated and wealthy in ways that increase the gap between the very wealthy and everyone else, and our continued clinging to the morality of the Protestant work ethic to blame the poor for their poverty and assuage any guilt the wealthy have (since they deserve it for their assumed hard work.)

And I'll try to check on the Alaska laws about tipping to see how that fits in.

3 comments:

  1. New state tip pooling regs:
    https://aws.state.ak.us/OnlinePublicNotices/Notices/Attachment.aspx?id=112714
    TL:DR
    If you accept tips and wish to pool those tips to distribute to a group of employees you must have a policy in place and provide it to all employees the payday before the policy goes into effect.

    ReplyDelete
  2. Thanks, Lance. Unfortunately when I got to the link, it had this message: "The requested attachment is not valid." But your comment got me to work harder and I did find this KTUU report from June 28, 2018 (after I was in Talkeetna) that said:

    "Alaska will prohibit businesses from requiring employees to share tips among other workers.

    "The Juneau Empire reports Lt. Gov. Byron Mallott signed new regulations that go into effect Friday to ban mandatory tip pooling.

    "Employees will still be able to voluntarily share tips, but the regulations forbid employers from forcing the action.

    "In a public comment submitted to the state earlier this year, the Economic Policy Institute estimated that Alaska employers would take about $14.4 million in tips each year from employees. According to tax records, Alaska workers make $40.1 million in tips each year.

    "The new regulations do not affect existing state laws that require employees to be paid at least minimum wage without tips calculated into that pay."


    So, the issue at the Roadhouse was that they wanted all employees, not just wait staff, to be included in the tips. And I'm not sure the wait staff would have agreed to sharing among themselves, since those who get better tips probably feel they earn them.

    ReplyDelete
  3. I was a paperboy and I always appreciated tips. As musician it feels good to get a tip. So I always tip. Aside from the fact that many folks depend on the tips, it makes people feel good to give and get a little something extras that expresses appreciation and gratitude.

    ReplyDelete

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