Why Tipping Is Essential for Servers Making $20 an Hour

Dear Quentin,

I consistently follow your column, even though my query may seem quite particular. The minimum wage at restaurants in Seattle has increased to $20.76 an hour. Previously, restaurant proprietors could apply a tip credit of $2.72, however, as of January, this practice ceased.

I have no problem with tipping when the service is excellent, but originally, tips were meant to compensate for lower salaries. Nowadays, even though I recognize that $20.76 an hour in Seattle isn’t enough to live comfortably, this concern doesn’t apply anymore.

Restaurants are shutting down due to high expenses: The proprietors cannot manage the increased minimum wage, and it appears that gratuity for servers isn’t supporting these establishments as it once did.

Should I still be tipping waitstaff?

Puzzled in Seattle


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Dear Puzzled,

Certainly. It might seem straightforward to blame the server for the cost of your pasta, but I encourage you to reconsider.

If you genuinely think that $20.76 isn’t enough for a decent living in Seattle—one of America’s most expensive places—then consider tipping your server generously. This way, they can afford their housing costs like rent or mortgage and have food on their plate too. Before choosing to dine out, factor an additional 15% to 20% into what you plan to spend on your meal.

Beginning January 1, 2025, Seattle
standardized the minimum wage
For every employee, irrespective of their workplace having more or less than 500 staff members. When announcing this initiative last year, Seattle Mayor Bruce Harrell stated his commitment to “actively tackling numerous challenges confronting small eateries as we move ahead.”

You’re not alone in feeling frustrated about tipping restaurant staff in Seattle after the increase in the minimum wage.
this comedic customer
Posted on Reddit: “If you’re earning $20 an hour or more as a server, I won’t leave a tip unless you truly surpass expectations—like performing CPR on my choking date.”

Despite Seattle workers currently earning above the federal minimum wage of $7.25 per hour, the average hourly pay across the U.S. stood at $35.93 in February, as reported by the
Bureau of Labor Statistics
For employees in the leisure and hospitality sector, the mean salary stood at $22.55.


Build that 15% to 20% built into the cost of your meal before you decide to eat out.

And you’re correct when you highlight that the restaurant industry is challenging. The National Restaurant Association reports that approximately 30% of eateries close within their inaugural year.
MenuTiger
, which offers QR-code menu software, points out that the factors leading to restaurant closures extend further than just labor costs, encompassing aspects such as location, inventory, management, and pricing of the menu items.

When dining at an establishment in cities such as New York, Seattle, or San Francisco, anticipate spending around $16 to $18 per glass of wine or cocktail. This price covers more than just your beverage; it includes expenses related to rent, utilities, heat, culinary personnel, kitchen help, janitorial services, and waiting staff, along with the cost of the alcoholic content. It’s customary to leave a tip amounting to about 20% for satisfactory service.

Outside of Seattle, employees who receive tips generally earn less money—the median weekly wage for those in tip-based jobs in 2023 stood at $538, as opposed to $1,000 for non-tipped workers, according to data from the Budget Lab, which is based at Yale University. Over one-third of these tipped employees (37%) earned such low wages that they did not pay any federal income taxes in 2022, contrasting with just 16% among non-tipped workers.

Nina Mast, an economic analyst at the Economic Policy Institute—a liberal research organization—states that our tipping system carries significant privileges, often unnoticed. “Workers who receive tips tend to be individuals from minority groups, females, particularly female minorities, or those raising children alone, and they are also overrepresented among immigrants,” she noted in her writing.
recent paper
.

Workers who receive tips face significant poverty levels and are at risk of having their wages stolen and experiencing sexual harassment, she noted additionally. “Among all regions, the South boasts the biggest population of tipped employees. In this area, tipped workers earn the second-lowest median wage across all regions, with many Southern states permitting employers to legally offer these individuals just $2.13 per hour.”

Have a nice day!


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