(NewsNation) — Americans have reached their “tipping” point when it comes to businesses relying on customers to pay employees.
A recent survey from Bankrate revealed that 41% of participants in the U.S. believe businesses should pay their employees more so they don’t have to rely on tips, and roughly 66% of Americans have a negative view of tipping.
And some businesses are getting the message.
DoorDash announced last month a new hourly pay option for its drivers, where they can choose to earn an hourly wage and also receive tips at the end of service.
South Park creators Matt Stone and Trey Parker have banned tipping at their Colorado restaurant, announcing their staff will take home at least $30 per hour, according to Fox Business.
However, on a federal level, tipped workers receive a minimum wage of $2.13 per hour due to the expectation they will make more through tipping, according to the Labor Department. But some states have laws that require businesses to pay tipped workers more than the federal minimum.
Financial expert and CEO of Your Money Line Peter Dunn said it makes sense for businesses to eliminate tips and pay employees per hour because it reduces the burden on customers.
“It just gets awkward. It doesn’t make for the best customer experience,” Dunn said.
He explained that paying employees a flat rate versus having them rely on tips is only fair and could be a game-changer.
Dunn said the DoorDash news is encouraging because it is taking back the onus of compensating its employees in a fair way.
But some tipped workers may be opposed to this idea because they can make more money on tips than an hourly rate.
However, the new DoorDash policy also still allows its employees to get paid at an hourly rate and receive tips on top of that for their service.
“The policy is meant to even the playing field so they can deliver more food and compensate more fairly,” Dunn said.
Plus, Americans are suffering from tipping fatigue, especially after the pandemic where restaurants and other services added miscellaneous fees to bills in order to keep businesses afloat.
Dunn said Americans got used to topping during the pandemic. People really empathized with people who were struggling and overcompensated, he said.
“But it feels like it’s gone too far,” Dunn said.
Dunn said he was traveling overseas recently when the service workers didn’t understand what tipping was. He explained that while the prices were a little higher, he didn’t have to tip because they pay their employees proper wages overseas.
It’s that weird moment when they bring you your bill at the end of a meal and it’s over. The relationship is over, and it was refreshing,” Dunn explained how he felt when there wasn’t pressure to tip the waitstaff.
He doesn’t feel like Americans receive that here.
But he hopes that the new DoorDash policy will influence a new cultural shift where more businesses don’t rely on customers to pay their employees.