The 'Last Week Tonight With John Oliver' host emphasized the importance of understanding how tipped workers are paid before deciding to withhold tips.
Most people know it’s important to leave a good tip for the service they receive. But with the internet constantly debating tipping culture, it can be tricky to figure out when to tip and how much is appropriate. It gets even harder with so many people feeling the effects of "tipping fatigue." Still, as HBO’s John Oliver points out, refusing to tip just to prove a point isn’t the way to go.
Oliver began by explaining how tipping culture has "gone out of hand." He highlighted examples of people being prompted to tip while shopping online, using a self-checkout at an airport, and even at a serve-yourself frozen yogurt shop. While these situations might seem absurd, Oliver noted that many workers still rely on tips for their livelihood. He also mentioned former U.S. President Donald Trump's promise to eliminate taxes on tips, a proposal that has sparked ongoing discussions about whether it will make it into the budget. Oliver pointed out that tipping is far more common in the U.S. than in other parts of the world. In Europe, it is much less prevalent, and in countries like Japan, it can even be considered "awkward and embarrassing." He added, "While traveling abroad, a person might find a wait-staff to be confused if they try and tip."
"You know a country is in a pretty good shape if their workers turn down free money," Oliver pointed out. He went on to explain that tipping is practically everywhere, yet many people still struggle to understand the rules of "how much to tip." In response, some have started protesting tipping culture by refusing to leave tips altogether. However, Oliver argued that "stiffing" your server in the name of protest doesn’t make you the hero—it might actually make you a bad person. Instead of withholding tips, he emphasized the importance of understanding why workers rely on them and how they are paid to get a clearer picture of the issue.
Beyond restaurant workers, many others—such as doormen, maids, and delivery personnel—rely on tips for a significant portion of their income. Anyone earning at least $30 a month in tips is classified as a tipped worker. "In most states, employers can legally pay tipped workers a much lower wage," Oliver explained. He revealed that in some cases, this wage can be as low as $2.13 an hour—a rate that hasn’t changed since 1991. "If what you make up in tips doesn’t get you all the way up to minimum wage then theoretically your employer is supposed to cover the difference through what is called the tip credit," he continued. "But that can be hard for employers to keep track of and it’s a system that is easy to cheat."
Oliver highlighted that poverty rates among tipped workers are twice as high as those in other professions. He also pointed out a troubling bias in tipping patterns, noting that white servers and "conventionally attractive" female servers tend to receive higher tips. He added, "Not only are you subsidizing the servers, they may be subsidizing other members of staff as well." Oliver explained that only seven states in the U.S. have laws ensuring that tipped and non-tipped workers receive the same base wage. His solution? Employers should pay all workers the same minimum wage, regardless of whether they receive tips. While some might worry that customers would stop tipping in such a system, he noted that tipping remains common in those seven states.
A new study conducted by Pew Research showed that more Americans feel they are expected to tip when compared to five years ago. It was found that 72% of Americans held that opinion. The study also found that 40% of Americans did not like businesses suggesting tip amounts to their customers while 24% favored the system. A majority of Americans said they would tip 15% or less on average while sitting down for a meal at a restaurant.