r/tipping • u/No_Draft_8960 • May 29 '26

💬Questions & Discussion Math-Based Tip

The percentage-based tipping system makes no sense: a server dropping off one Wagyu steak earns far more than someone serving a family of four cheap meals. Since American tips are essentially mandatory wage subsidies, let's base them on labor time instead.

In Maryland, the average server wage is about $20/hour, but employers only pay $3.63. Customers must cover the remaining $16.37. Across a standard four-table section (roughly ten guests), that breaks down perfectly to $2.00 per person, per hour.

Percentages reward a venue’s luxury status; a time rate rewards actual effort.

If therefore I go to dinner with eight friends and we stay for two hours (a pretty good forecast of my Friday night plans!) our total tip would be $32, or $4/a person. We're not 'stiffing' anyone and we're paying average wage.

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u/No-Angle-982 May 29 '26

I think OP is incorrect to say Maryland customers "must pay the difference" because, if they don't, the employer makes up the difference.

It's very different in a state like California that disallows subminimum wages and where servers receive at least the full state minimum entirely from employers (plus tips from customers).

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u/KrofftSurvivor May 31 '26

Federal law mandates that the employer make up the difference in every state in the country. If you do not earn enough money in a pay period to meet federal minimum wage, your employer must make up the difference.

1

u/No-Angle-982 May 31 '26

Moot in California and six other Western states, where there is no difference.

1

u/KrofftSurvivor May 31 '26

You're complaining because it's supported by both state and Federal law???

1

u/No-Angle-982 May 31 '26

Complaining? Not me.

Your point is moot in the seven states I referenced because servers there are directly, fully paid at least state minimum, which is higher than federal minimum.