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Americans Push Back Against Spiraling Tipping Culture

Consumers frustrated by pre-entered digital tip screens want businesses to pay workers fair wages.

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Overview

  • A recent Bankrate survey found 41 percent of Americans now say tipping has gotten out of control, up from 35 percent last year.
  • Pre-entered tip screens on payment terminals frustrate 38 percent of respondents as tipping prompts appear in coffee shops, self-checkouts and other unexpected settings.
  • Roughly two-thirds of those surveyed argue that businesses should raise employee wages rather than pass the burden to customers, but only 16 percent would accept higher prices if tipping were eliminated.
  • Generational gaps persist, with just 43 percent of Gen Z and 61 percent of Millennials always tipping at sit-down restaurants compared with 84 percent of baby boomers.
  • The federal tipped minimum wage remains $2.13 per hour, and lawmakers are weighing tax breaks for tipped workers in an upcoming congressional budget proposal.