Why Initiative 77 Does Not Mean the End of Tipping

Recently voters in Washington D.C. voted for Initiative 77.  The vote was not particularly close: 55% voted for the initiative and 45% voted against it.  The initiative changes minimum wage laws in the District two ways.  First, it increases the minimum wage to $15 per hour by 2020 and then boosts the minimum wage by inflation after that.  Second, the initiative slowly increases the minimum wage for tipped employees so that by 2026 they receive the same minimum wage as any other worker. Continue reading

Is It Time to End Tipping?

Today’s Wall Street Journal (Feb. 29, 2016, page R7; online version is here) printed  an article I wrote.  They asked me to be part of a debate on “Should tipping be eliminated in restaurants?”  I took the “yes” side.  This is a follow on article from the piece I wrote a year earlier in February 2015 (see the original piece here) that advocated the same idea. Continue reading

Should Tipping Be Eliminated?

Tipping is widespread across North America. People tip taxicab drivers, hair dressers and hotel doormen. However, the place where the most people tip is in restaurants and bars. The problem for many customers is that tipping is confusing since tipping rules are not clear and payments are arbitrary. Many people agree the “standard” tip is 15%. However, on what amount do you tip 15%? Is it the total bill? Is it the total bill excluding tax? Is it the total food bill, with expensive bottles of wine tipped at a separate rate? Many people agree the tip rate for large groups should often be higher, but how many people comprise a “large” group? Most importantly, tipping means doing math, which is a difficult task for some people and a challenging task after drinking alcohol in a bar or restaurant. Continue reading