Hacker News new | ask | show | jobs
by mrobins 1063 days ago
I always tip well because I get that tips are misplaced wages, but the tip economy is so messed up.

A huge piece is that it's based on an asymmetry of information. I don't know how much a barista makes so I assume min wage and tip accordingly. Consequently a business owner has less incentive to raise wages because customers are accustomed to subsidizing their payroll. Sadly employees are the pawns in all of this and viewed as having their hands out for being greedy as if they have their hands out or are the ones who program the %s into their Square terminals.

I've also seen a few courageous businesses try and move to fair wages + no tipping, and then reverse course because they weren't able to keep employees. I think the only solution is systemic, like getting rid of the tip minimum wage, but that's unlikely.

1 comments

The tip minimum wage does not exist in a couple states. California, Oregon and Washington are three examples. But tips are still expected in those states.