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The truth about tip jars . . .


mustang guy

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I want to start by saying that what I am writing has to do with personal experience and not something I read or heard.

The subject matter is tip jars at checkout counters. A few years ago, I was in a local eatery and I noticed a jar labeled Gratuities Appreciated. I didn't have much spare change, so I apologized to the girl who was helping me that I would catch up with her next time. Her response floored me. She said "we don't get any of that anyway". That got me thinking about who is getting this money. I asked pointedly, "who gets the tips?" Her response was "the owners".

Since then, I have found that in 2 other places, one being a large chain, the tips don't get distributed to the people responsible for customer service. This is not only unethical, possibly illegal due to Wage and Hour laws regarding minimum wage exemption, but poor business practice. What incentive are owners and managers giving to employees when they do this? None. It's a disincentive.

One of my son's worked for a place where there was a tip jar, and he actually got fired for asking where his tips were.

Here is the minimum you should do. Ask the person if they get any of the tips. If not, ask them if they are allowed to receive tips at all. If they are, hand them money.

The most you can do is threaten the owner with bad publicity unless they either remove the jar or start distributing the money to those who earned it.

Keep your eyes open, and let's take care of those poor employees who are getting ripped off because they are too naive or afraid to stand up to unethical bosses.

Thanks for reading,

Craig

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Yeh. I've known this to be true in some places.

If i ever have a concern about it, i do ask the server.

For example, putting a tip on a credit card requires the manager to take cash out of the register to give to the server. This is transaction where a disconnect can occur.

Times I've had any doubts about that, i just tip the server in cash.

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It is also an idiot move on their behalf. They get a few bucks from the tip jar every day, but the enplopyees must all hate the owners. I'm sure this kills morale.

Very true, like paying someone minimum wage, how excited do you expect them to be about their job at that pay, that attitude usually reflects right back to the customer.

I like Boxx's way of doing it, tip directly to who gives you the service.

Edited by dtel
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Minimum wage? Read this from US Dept of Labor:

What is the minimum wage for workers who receive tips?
An employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.
Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions of each law which provide the greater benefits.
An unscrupulous employer could put a tip jar out there just so they can pay below minimum wage. Incredible as it may seem, this happens! Basically the employee is getting double screwed! They are compelled to make up the difference if the total is not minimum wage, but in a cash business how well can this be enforced?
Edited by mustang guy
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Thanks for the info. I will make certain that the server gets the tip in her or his hands from now on. I have seldom used the tip jar, but have left the money to cover the bill and the tip on the table and left at times. Always leave tip and if server is especially busy yet takes extra time to help me decide what to order if I just don't know what I want, sometimes twice the bill.

These People work hard and deserve to be treated well. If you tip well you can bet you will get good service from that person the next time you're there.

John

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My son in law works in a Starbucks, and the tips placed in the jar are divided equally among all of the employees working that particular shift. Given the low wage that he receives, the tip money makes a very big difference in his weekly income. Of course, my daughter supports him, but that's another matter entirely!!! :lol:

Maynard

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Very true, like paying someone minimum wage, how excited do you expect them to be about their job at that pay, that attitude usually reflects right back to the customer. I like Boxx's way of doing it, tip directly to who gives you the service.

I have also learned, several years ago, not to leave a cash tip on my table, then get up and leave. When I left a nice steak house after eating, another patron (a thief), scooped up my tip money and pocketed it. How do I know this, my waiter came out in the parking lot and asked my "what was wrong with the service?"

Edited by Boxx
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Here is what I read about "charity jars" on counters a few years ago.

Anyone can pay a one time fee to a charity or foundation for the rights to purchase the jar The example used was a foundation for muscular dystrophy. The fee at the time was as low as 300.00. That allows the person to put the jar in a business and collect money. So what you are putting in the jar is actually not going where you think it is. Once the 300.00 initial outlay is covered, it's all profit to the individual.

Shakey

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Here is what I read about "charity jars" on counters a few years ago.

Anyone can pay a one time fee to a charity or foundation for the rights to purchase the jar The example used was a foundation for muscular dystrophy. The fee at the time was as low as 300.00. That allows the person to put the jar in a business and collect money. So what you are putting in the jar is actually not going where you think it is. Once the 300.00 initial outlay is covered, it's all profit to the individual.

Shakey

I had no idea. Thanks for pointing this out!

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Yeh. I've known this to be true in some places.

If i ever have a concern about it, i do ask the server.

For example, putting a tip on a credit card requires the manager to take cash out of the register to give to the server. This is transaction where a disconnect can occur.

Times I've had any doubts about that, i just tip the server in cash.

Cash tips are the way to go for the reasons above, and because the business deducts the credit card fee percentage from the server's tip payment. $100 in tips, the server gets $98, $96, or $94 depending on the cards that were used. After a few months it adds up.

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Well that's depressing. I will have to keep that in mind when I am at a counter. In restaurants I always try to leave the tip in cash and deliberately hand it to my waiter. In an inexpensive restaurant I try to pay the bill in cash & tell them I don't need any change, that way it goes right in their pocket.

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I have also learned, several years ago, not to leave a cash tip on my table, then get up and leave. When I left a nice steak house after eating, another patron (a thief), scooped up my tip money and pocketed it. How do I know this, my waiter came out in the parking lot and asked my "what was wrong with the service?"

We also had an experience of another waitress picking up the tip from our table, we now put it in the hand of the person who waited on us.

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I have also learned, several years ago, not to leave a cash tip on my table, then get up and leave. When I left a nice steak house after eating, another patron (a thief), scooped up my tip money and pocketed it. How do I know this, my waiter came out in the parking lot and asked my "what was wrong with the service?"

We also had an experience of another waitress picking up the tip from our table, we now put it in the hand of the person who waited on us.

It's easier to just stick it in the g-string.

:D

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Very true, like paying someone minimum wage, how excited do you expect them to be about their job at that pay, that attitude usually reflects right back to the customer. I like Boxx's way of doing it, tip directly to who gives you the service.

I have also learned, several years ago, not to leave a cash tip on my table, then get up and leave. When I left a nice steak house after eating, another patron (a thief), scooped up my tip money and pocketed it. How do I know this, my waiter came out in the parking lot and asked my "what was wrong with the service?"

Wow Boxx, I will definitely take this to heart. I've always just left the tip on table, unless the bill plus the tip came out to a nice round number. Then I would tell my server to keep the change.

babadono

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Several of the places I frequent have tip jars...One in particular usually just has the owner working with one hired help person. I found it disturbing that she (owner) was taking orders and cooking. Given I knew she was the third owner of the establishment since I've been going there can't help but think the only people making money are the owners of the building...

Edited by tkdamerica
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