Tipping out of control, Bankrate survey shows

Americans have tipping fatigue. A new survey says that one in three says the practice of expecting a gratuity has gotten out of control. 

Tipping in America, according to various histories, goes back to the mid-1800s. And it continues into the modern day as a way to supplement income for jobs that offer lower pay. 

In the U.S. now, the federal minimum wage for tipped employees is $2.13 an hour. Compare that to other workers who see the minimum wage of $7.25 an hour. So many people rely on tips to help pay the bills. When the pandemic hit, employees out working and working with the public started to see gratuities as a way of thanking them.

But when life normalized, the expanded tipping culture remained. 

A new Bankrate survey reveals many believe asking for a tip has not gotten out of control. It found 35 percent of people agree with that sentiment. Fifty-nine percent of Americans now view tipping negatively. And Baby Boomers, well, 72 percent of that group have the most negative views of tipping; however, they are still some of the best tippers.

But there are places where people still believe tipping is very important, like at restaurants, particularly at sit-down restaurants. But also food delivery, as it is still considered an important service that deserves a tip. Your hair stylist or barber still makes the cut too. And ride-sharing or taxis do too. All of these were standard long before the pandemic.

Now it’s not all doom and gloom. People do want to tip when the service is great. Part of tipping fatigue, per this survey, is that consumers want service industry workers to get paid more. And they don’t like that screen with the set tip figures you have to sort out in front of the employee.