The pandemic has changed everything, including the way Americans tip. Pre-pandemic, tips were typically reserved for in-restaurant meals, taxis, and salons. But suddenly people had the “option” to tip for coffee they ordered at the counter or drive-thru and drank in their cars.
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If you’re wondering when, to whom, and how much to tip, you’re not alone. Here’s what you need to know about the current tipping culture.
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Tipping is still (usually) optional
Just because someone asks you to tip doesn’t mean you have to tip. At one time, tipping was thought to be a way for him to do two things. One is to provide a living wage to workers who earn very little per hour and rely largely on tips for their livelihood, and the other is to reward good service.
Today, tips are required even if the worker earns more than the minimum wage without tips or if little or no services are actually provided. Tipping is optional in these situations. Once the barista shakes that screen to your liking, you can always tap the “no tip” option. There’s no shame in that, but some people wonder if they’ll be penalized for slow service or a poorly made latte. If that happens, you’ll be looking for a new coffee shop.
If you are asked for a tip before service is provided (for example, before you order and receive your coffee), that’s a pretty good sign that tipping is optional.
If a tip is expected
In some cases, tips are traditionally expected and prices and wages are adjusted accordingly. This includes salon and spa services, sit-down restaurant services, taxis and shared trips, and more. In these cases, it is customary to tip 20%, and any higher or lower tip is considered a reflection of the service. Please note that these tips are provided to you after you have received the service so that you know the size of the tips guaranteed.
Tipping: cash or card?
Many workers, and businesses, prefer to tip in cash. By tipping in cash, businesses can avoid paying credit card surcharges for tips. Employees who receive cash tips can receive their tips the same day, which is an advantage. Note that tipped workers are required to keep track of their tips and pay taxes on the money they receive.
Tipping has become more complicated these days, but the bottom line is to be prepared to tip when you receive good service. And if you can’t afford to tip where it’s expected, go somewhere cheaper. Many workers rely on tips for a living wage.
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This article originally appeared on GOBankingRates.com: Confused by the new tipping culture? Here’s what you need to know about tipping