Summary
Tipping in U.S. restaurants has dropped to 19.3%, the lowest in six years, driven by frustration over rising menu prices and increased prompts for tips in non-traditional settings.
Only 38% of consumers tipped 20% or more in 2024, down from 56% in 2021, reflecting tighter budgets.
Diners are cutting back on outings, spending less, and tipping less. Some restaurants are adding service fees, further reducing tips.
Worker advocacy groups are pushing to eliminate the tipped-wage system, while the restaurant industry warns these shifts hurt business and employees.
Key cities like D.C. and Chicago are phasing in higher minimum wages for tipped workers.
Sure, legally the standard minimum wage applies. The notoriously insufficient even at the time of adoption $7.25/hr minimum wage. If you can get the notoriously understaffed DOL to take a serious look at your case. If you can produce enough evidence. If, per federal minimum wage law, the entire week’s pay- not per day, not per hour, per week- was less than that minimum wage per hour. If, if, if, then yes, the employer is technically required to compensate for the lost wages up to but not more than the $7.25/hr federal minimum wage.
In practice, wage theft is the largest and fastest-growing category of theft in the US.