Internet rallies around Subway employees after branch says tips will be included as part of wages

Editor's note: This article was originally published on May 29, 2023. It has since been updated.

As a business owner and employer, there may be times when your employees receive tips or a common act of gratuity in a little glass jar that says "tips appreciated." While tips are accepted across different work sectors, from making coffee at Starbucks to the cashiers at Burger King, do tips from a customer automatically make an employee a tipped employee? According to Indeed, tipped employees are individuals who work on an hourly basis, and instead of earning a flat rate per hour at or above minimum wage, wages are reduced as most income comes from customer tips. While McDonald's and Taco Bell forbid it per company policy, it seems customary to tip the sandwich artists at Subway, according to Reddit.

In a Reddit post shared by u/Denver, the Lakewood Subway team is now called "tipped" employees after a notice was put on the glass door that garnered everyone's attention. "Subway has changed the way we get paid. We are considered tipped employees and get paid the state minimum," the note read. "We now must rely on tips to survive. We receive 50% on credit card tips and 100% cash." In the United States, numerous industries rely on tipping. In the United States, the federal tipped minimum wage is $2.13 per hour. While this may sound criminally low to those receiving the federal minimum wage of $7.25, employers must pay either the federal or state minimum wage, whichever is higher.

Moreover, it is not required to tip fast food workers, as these restaurants are often considered "quick service" establishments, where customers typically order and pay at a counter and then take their food. In contrast, tipping is more commonly associated with sit-down restaurants, where customers are typically waited on by a server. While tips may be a kind gesture in some food chains, Reddit users disagree on tipping those sandwich makers a little extra dough. "I vote with my wallet. I don’t go to any place with extra service charges or tipping employees who should not be tipped. Especially not where an owner gets half the tips," said u/Eagle_Fang135.

"They're likely not getting tipped. The franchise owner has reported them as tipped employees so that he can pay them less than minimum wage. That doesn't mean anyone's getting tips," wrote u/R-Guile. "I’m not subsidizing subway employees with tips. If they think so, they can fold up their business. There are much better sandwich shops," added u/Corinthian_Pube. "Don't eat there, don't work there. I hope they go out of business. Tipped employees shouldn't exist. Tips are a form of charity and should not be considered part of anyone's wages," shared u/SalamanderJohnson.

However, it is worth noting that some customers tip fast food workers to show appreciation or to support workers who may be making lower wages. Some customers may tip when a worker goes above and beyond by providing exceptional customer service or accommodating a special request. Tipping at a fast food restaurant is a personal decision, and there is no right or wrong answer. If you do choose to tip, it is important to respect any policies or guidelines set forth by the restaurant, as some fast food chains require workers to decline tips or donate them to charity because these chains want to maintain consistency in pricing and customer service and do not want workers to feel pressured to provide better service to receive better tips. If you are unsure whether or not to tip, you can always ask the manager for guidance.