As minimum wage rises, some restaurants abandon tipping

Ian Pajer-Rogers |

If you've ever worked in a restaurant, you know that working for tips is an anomaly in the American workforce. Tipping puts the onus of paying a decent wage to waitstaff on the customer, as most servers are exempt from the minimum wage and instead are subject to "tipping minimum wage" -- usually less than $3 per hour.

What's more, in many high-end restaurants, tipping creates a huge pay disparity between those who work in the "front of the house" serving customers and those who work to prep, cook, and clean the restaurant.

The rising minimum wage in many states and municipalities have caused some restaurants to reconsider the tipping economy. According to an article in The New York Times, some restaurant owners are getting rid of tipping and instead implementing a surcharge of around 20% to each customer bill and splitting that money among the entire staff. 

What do you think about some restaurants moving away from tipping? We'd love to hear from both restaurant staff and consumers in the comments below.