{"id":3943,"date":"2021-03-02T16:53:15","date_gmt":"2021-03-02T20:53:15","guid":{"rendered":"https:\/\/lgcassocprod.wpengine.com\/?p=3943"},"modified":"2024-03-01T07:42:29","modified_gmt":"2024-03-01T12:42:29","slug":"raising-minimum-wage-vs-tipping","status":"publish","type":"post","link":"https:\/\/lgcassociates.com\/es\/raising-minimum-wage-vs-tipping\/","title":{"rendered":"Hospitality in the News | Raising Minimum Wage vs Tipping"},"content":{"rendered":"<p><span data-contrast=\"none\">Every week we comb through the news to find employment trends affecting the hospitality\u00a0<\/span><span data-contrast=\"none\">industry<\/span><span data-contrast=\"none\"> so you don\u2019t have to. This week\u2019s topic: the pros and cons of raising minimum wage vs tipping. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><!--more--><\/p>\n<h5><strong>Raising Minimum Wage vs Tipping<\/strong><\/h5>\n<p><span data-contrast=\"none\">For years, hospitality industry professionals have been trying to decide whether\u00a0<\/span><span data-contrast=\"none\">a wage increase or\u00a0<\/span><span data-contrast=\"none\">the continued method or receiving\u00a0<\/span><span data-contrast=\"none\">tip<\/span><span data-contrast=\"none\">s\u00a0<\/span><span data-contrast=\"none\">is\u00a0<\/span><span data-contrast=\"none\">the better\u00a0<\/span><span data-contrast=\"none\">compensation\u00a0<\/span><span data-contrast=\"none\">option\u00a0<\/span><span data-contrast=\"none\">for\u00a0<\/span><span data-contrast=\"none\">employees<\/span><span data-contrast=\"none\">.<\/span><span data-contrast=\"none\">\u00a0Recently talks about raising federal minimum wage to $15\/hour<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">have reignited the\u00a0<\/span><span data-contrast=\"none\">conversation,\u00a0<\/span><span data-contrast=\"none\">prompting businesses to evaluate how tipped employees will be getting paid in the future.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">There are several pros and cons\u00a0<\/span><span data-contrast=\"none\">for each side that affect employees and businesses<\/span><span data-contrast=\"none\">\u00a0(and the future of the restaurant industry). Below, we\u2019ll cover the advantages and disadvantages<\/span><span data-contrast=\"none\"> for raising minimum wage vs tipping as the primary form of compensation. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h5><span data-contrast=\"none\">TRADITIONAL TIPPED COMPENSATION<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">For years, hospitality employees like servers and bartenders and some hotel staff have been relying on tips from guests in order to make a living.\u00a0<\/span><span data-contrast=\"none\">As technology continues to advance, even the tip process advances with it, with the introduction of\u00a0<\/span><a href=\"https:\/\/lgcassociates.com\/es\/digital-tipping\/\"><span data-contrast=\"none\">digital tipping<\/span><\/a><span data-contrast=\"auto\">. Here are some of the ways tipping\u00a0<\/span><span data-contrast=\"auto\">can affect employees and managers:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Pros<\/span><\/b><span data-contrast=\"auto\">:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Employers can\u00a0<\/span><span data-contrast=\"auto\">keep payroll costs low<\/span><span data-contrast=\"auto\">er by offering the standard minimum wage (which can be even lower at restaurants to account for tipping).\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Employees at busy locations can sometimes make<\/span><span data-contrast=\"auto\">\u00a0more money by being tipped<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">(<\/span><span data-contrast=\"auto\">upwards of $50\/hour<\/span><span data-contrast=\"auto\">).\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">May motivate workers to put in more effort to receive a better tip.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Cons:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Employees rely heavily on guests to make money.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">Some non-tipped employees may feel it\u2019s unfair that they aren\u2019t compensated similarly.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"1\"><span data-contrast=\"auto\">If not utilizing digital tipping, some tipped<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">p<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">n<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">l<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">k<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">h<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">u<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">k<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">p<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">r<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">r<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">v<\/span><span data-contrast=\"auto\">a<\/span><span data-contrast=\"auto\">l<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">m<\/span><span data-contrast=\"auto\">a<\/span><span data-contrast=\"auto\">y<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">n<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">h<\/span><span data-contrast=\"auto\">a<\/span><span data-contrast=\"auto\">v<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">h<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">p<\/span><span data-contrast=\"auto\">p<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">r<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">u<\/span><span data-contrast=\"auto\">n<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">y<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">r<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">c<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">v<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">p<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">f<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">c<\/span><span data-contrast=\"auto\">u<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">m<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">r<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">d<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">n<\/span><span data-contrast=\"auto\">\u2019<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">h<\/span><span data-contrast=\"auto\">a<\/span><span data-contrast=\"auto\">v<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">c<\/span><span data-contrast=\"auto\">a<\/span><span data-contrast=\"auto\">s<\/span><span data-contrast=\"auto\">h<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">o<\/span><span data-contrast=\"auto\">n<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">t<\/span><span data-contrast=\"auto\">h<\/span><span data-contrast=\"auto\">e<\/span><span data-contrast=\"auto\">m<\/span><span data-contrast=\"auto\">.<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><span data-contrast=\"auto\">RAISING EMPLOYEES MINIMUM WAGE<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"auto\">The standard restaurant employee makes less than minimum wage\u00a0<\/span><span data-contrast=\"auto\">(sometimes as low as $2.13\/hour)\u00a0<\/span><span data-contrast=\"auto\">to account for the tips they\u2019ll receive during their shift.\u00a0<\/span><span data-contrast=\"auto\">But this concept, which has been the norm for front-of-house employees, is being rethought due to discussions around\u00a0<\/span><a href=\"https:\/\/www.epi.org\/publication\/why-america-needs-a-15-minimum-wage\/\"><span data-contrast=\"none\">raising the federal minimum wage<\/span><\/a><span data-contrast=\"auto\">\u00a0to $15\/hour \u2013 which some states have already begun doing.\u00a0<\/span><span data-contrast=\"auto\">This prompts the question, should tipped employees be part of the minimum wage increase and do away with tipping altogether<\/span><span data-contrast=\"auto\">? Here are the pros and cons:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Pros:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"1\"><span data-contrast=\"auto\">Can better control staff compensation because you\u2019re not relying on customers to pay their salary.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"8\" data-aria-level=\"1\"><span data-contrast=\"auto\">R<\/span><span data-contrast=\"auto\">eliable compensation could attract a more professional talent pool<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">and allow employers to pay differently depending on experience.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"9\" data-aria-level=\"1\"><span data-contrast=\"auto\">May d<\/span><span data-contrast=\"auto\">ecrease turnover because employees are more satisfied.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Cons:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"6\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\"><span data-contrast=\"auto\">Could lower pay for employees whose tips help them make over $15\/hour.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"6\" aria-setsize=\"-1\" data-aria-posinset=\"11\" data-aria-level=\"1\"><span data-contrast=\"auto\">Increasing payroll costs for employers could mean a\u00a0<\/span><span data-contrast=\"auto\">decrease in jobs because they can\u2019t afford to hire.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"6\" aria-setsize=\"-1\" data-aria-posinset=\"12\" data-aria-level=\"1\"><span data-contrast=\"auto\">Menu prices may increase to account for payroll increases.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">For the restaurant industry in particular, raising minimum wage vs tipping is a catch 22; <\/span><span data-contrast=\"auto\">raising wages will undoubtedly increase costs, but could lead to building a better team that attracts more business. Use these pros and cons to\u00a0<\/span><span data-contrast=\"auto\">help you decide what\u2019s right for you and your team.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">***<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Need help with staffing? LGC can provide employees in temporary, temp-to-hire, and permanent capacities. Contact us today to learn how we can help.\u00a0<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Every week we comb through the news to find employment  [&#8230;]<\/p>\n","protected":false},"author":67,"featured_media":312849,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[106],"tags":[406,232],"class_list":["post-3943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-hospitality-in-the-news","tag-restaurants"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hospitality in the News | Raising Minimum Wage vs Tipping<\/title>\n<meta name=\"description\" content=\"Every week we comb through the news to find employment trends affecting the hospitality\u00a0industry\u00a0so you don\u2019t have to. 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