Career Calling

March 16, 2014

No More TIP wages?

Filed under: Economics — claycerny @ 9:11 pm
Tags: , , , , , ,

Think Progress reports that some businesses are asking their customers to do something very odd:  Stop tipping wait staff.  Instead, these moral businesses are pricing their food and drink in a way that lets them offer living wages and benefits, which is a common practice in other countries.  The article also notes that under the current tip based system, the poverty rate for restaurant employees is three times higher than other workers.  If the average tip is 20% and the restaurant raised its price by that amount, we could be confident that hard working people are being properly compensated.  Anyone who thinks that paying such a small amount is unfair has another option:  Cook your own meals.

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