The tipping backlash has begun | Here are the new rules to know

Numbers show people tipping less, but why?

ByEva Pilgrim ABCNews logo
Friday, December 15, 2023
The tipping backlash has begun | Here are the new rules to know
There is a rising backlash against tipping after new data shows that some service industry workers are being tipped less than last year.

There is a rising backlash against tipping after new data shows that some service industry workers are being tipped less than last year, according to a report by the Wall Street Journal.

Now, there is a debate over tipping and the question of just how much gratuity is too much.

"I think that it's evolved to the point where everything is asking for tips," said consumer Garrett Bemiller.

The 26-year-old says that after being inundated by requests for too many tips, he's feeling what's now being called "tipping fatigue."

RELATED: Holiday tipping etiquette: Who should you tip and how much?

"I will tip when I go out to eat at restaurants. I will tip when I order food. But I won't tap and tend to turn it down when it's something that I already know that they're getting like a full wage for," Bemiller said.

New data from payroll provider Gusto reports that as of November, service-sector workers in non-restaurant jobs made 7% less in tips versus a year ago - or from making $1.38 an hour in tips to now $1.28 an hour.

While tipping is down in some places, the holidays are bringing cheer for others, like workers in restaurant jobs. Gusto also reported that tips are now up by 3% from last November.

ALSO SEE: What is tipflation? When to tip and when to skip

"I think inflation is leading people to be especially stingy about how much they're spending," said Ted Rossman, a senior industry analyst for Bankrate.com. "And I think that this proliferation of tip prompts is making people question the very nature of tipping. But I think a lot of the time, if you're being asked for a tip at the point of sale, it's up to your discretion. I think it's nice to be generous if somebody went above and beyond, but I don't think it's always expected."

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