Joe Biden has come under attack following his draft policy on new legislation to scrap the Tipping rules- A form or Wage Subsidy for the service sector in America
- What is Tipping
- Why does it exist in America and heavily backed by employers in the service industry?
- Why only in the service sector predominantly
- Who benefits and Why
- Is it expected nationally or customer-driven
- Is Biden’s Policy a valid or right one
- How will Biden’s policies make changes
- Is it fair to say that it must be an ‘ALL IN’ to achieve the optimum effect?
- Will fairer wages be the practical and social balancing
- Waiter and waitresses threaten, encouraged to do more to attract more tips
- Is tipping a business or a natural generous act of customers for good service and food
Funding the wages in the American service industry via gratuitous income via customer’s tips as normal practice, relating to a history that traces to the Europeans, The US adopted this scheme between 1938 and 1966, due to strong acceptance, particularly from restaurant and railroad industries — following the Civil War.
Tipping in the USA developed a financial attitude of applying a percentage of the customer’s total bill, adding a tipping value,15 % to 20% for gratuity payment place on the customer’s shoulder to pay.
The basic Minimum wage was thus supplemented from acquired tipping that workers received, However in many cases if tipping was not sufficient, the company i.e the boss found himself filling that gap..
Hence, the responsibility in promoting successful tipping became pressure on employees, by employers in the service industry!
This ”counting-in” of tips to bolster low wages is supported by the state laws to this day.
In many States $7.50ph is the going rate under federal laws, however, this differs from state to state, you can find a range of this minim wage starts between $2 to $7 very low indeed.
Biden’s Legislation Fix
Biden’s View and Law are simply to scrap this archaic system that depends on workers providing for the business as an additional income for their pay, His policy is to transfer the responsibility solely on the service industry owners to provide a living wage nationally, This by that very nature removing reports of abuse that is evident today.
Raising the national minim wage limit to reflect standards of living across the states
Tipping 2019 – [A change]
Note since 2009 in the USA the tipping law has seen no changes, but that is about to change!
And any legislation on change-reform will go a long way to resolving this dubious legacy, One that has proved time and again as the core source of sexual and peer pressure harassment on staff
The current age-old broken wage system hits predominantly on employees at ground level, like families and adults working in this service industry
Looking back in 1815 – The US Caucasian male workers had full minimum wages, this was withdrawn later due to disagreement between the bosses and workers, leading to workers being dismissed, The companies then sought the workforce of Women an easier option, these women were paid even lower wages to their dismissed male counterparts.
Work started and the benefits to companies proved advantageous, business was now coming, the prospects were good and further studies gave rise to employing even lower-paid minority blacks into the workforce propelling the industry to loftier heights and profits.
Additionally, women bosses were promoting and encouraging uniforms that revealed more of the female attributes in an effort to gain more for their business, the perfect means of accessorizing your shop front and to squeeze more Greenstuff from the customers, enticement and sexualality was now also on the menu.
Women for fear of their jobs tolerated these requirements, though in many reported cases it was found that abusive or sexually dangerous behaviour ensued by customers wanting more than a dinner or lunch
The Full New Wage System
Over a period of 5 years, minimum wages stood between $8 to $15 however bosses and businesses claimed that overtime suffered as a result of this,
Kitchen staff who were working a 6-day week, soon found their working week is reduced to a 4-day week.
Across the US Seven States took to changing the minim wage problem! notable cities like New York
New York was one of the trial cities to move on the higher minimum wage idea, other states like Washington DC, California, and Florida followed this wage balance call.
however, they still hedge their bets on receiving tips in their restaurants, so In California for example a $10 to $12 tipping is currently expected per visit
Argument Against New Laws
As you can imagine this comes primarily from the establishment owners, their argument in defense was the service sector and aftershock of pandemic 2019-2021 caused damage to their business, The decimation of businesses particularly in their ”business sectors” was not ready to embrace new changes, least of all a complete overhaul, they felt that even more businesses would go to the wall in the US.
Some workers are reported saying the tipping system works well and is a benefit to them, by way of achieving better wages from good tipping, sometimes earning up to 3 times more than their minim wages, While this is good for some in niche’ locations, it does little for the majority working in less luxurious or potential supported establishments
Need for Change [BBC interview]
With this decimation of a high proportion of the service industry, particularly the food chain and eateries, an all-out overhaul of this unsavory service area born from another era could be the very thing that’s needed.
Rebuilding on stronger footing gives serious possibilities and added mileage toward the longevity of the industry
The potential to regenerate this sector will always be a requirement to the public needs and for transparency, together with removing current flawed state laws.
These Bosses control workers’ wages and even their lives and the values of the employees need to be weeded out and put back on the reality tracks. An all-encompassing rule that prevents abuse and control, has got to be the answer to a better workplace, its customers, and longevity of the businesses and industry needs
The Level of Debt
Many individuals and companies are facing debt and creditors claims, there are ways to go around this, and understanding how to is the first step to resolving or reducing this weight and serious worries <<a look at this>> would go a long way to finding a solution.
The nature of Capitalism is that prices go up demands go down
The introduction of Diners Tablet ordering systems has had an effect on tips with customers not readily offering tips as before [perhaps a disconnecting from the pressure of a server standing in your periphery and less this pressure only paying for what you honestly felt you purchased and ate!
In China New aspects of this Capitalism is dripping I not Chinese business service sectors, and they to are adapting it seeing a money-making trend, the American fast-food sectors, in china city of Shenzhen where I live has shown a sudden and marked move to paying for your cutlery and napkins upon purchasing your foods and drinks, this has recently been noticed by myself perhaps in 2 to 3 months time scale.
My Experience and Opinion
My grievance on this is simple would you pay to take riding lessons and then expect to have the accessories added to your payment to ride the horse? I mean how else would ride the horse as a newbie anyway? Its capitalism has gone mad, driven by profit only not customer care and sustainability, it’s the now! now! view!
The next this will be we pay to use the teapot the tea was delivered to our tables next, or perhaps for the use of the premise toilet during your meals?
This nonsense has to stop or business in my view will find fewer and fewer customers during none peak periods and only weekends when people must go out to meet or have a change of scenery or social connection.