All Labor Deserves Compensation. Don’t Be a Dick About It.

I’m sometimes surprised about what people find controversial around here. Our articles about abortion and reproductive rights are met with pretty universal agreement. While one of the most controversial things we’ve ever written was about the American tipping system:

If You Can’t Afford to Tip 20%, You Can’t Afford To Dine Out

You should read it. But if you don’t want to bother, here are the highlights:

  • Our tipping system is whack by design. Employers are allowed to pay servers below minimum wage with the expectation that customers will make up the difference in tips. This means tipping is not, as the word would suggest, a reward for good service. Rather, it is pretty fucking mandatory if you want to qualify as a Decent Human Being.
  • So if you don’t tip at all, your server is being criminally underpaid. This isn’t your fault, but it is your responsibility. Which means diners should factor the cost of tipping into their budget when dining out since employers are passing off the cost of their payroll to the customer.
  • The solution is to automatically fold service charges into the bill, which more and more restaurants and bars are doing. But it’s by no means universal quite yet. So in the meantime your options are to cook at home or tip your server at least 20%.

The number of comments on that article that don’t simply complain about the necessity of tipping, but completely disregard the humanity of servers is staggering. The contempt and disrespect from these trolls is, uh… super gross! Here’s a sample:

Damn. I did not order a side of ableism with this comment. Please take it back.

It’s the day after Labor Day. So I’m spending this article on the dignity of labor: what it is, why it’s deserving of respect and fair compensation, and why disrespecting labor is a massive dick move.

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Barbara Sloan’s New Book Dares To Suggest Service Industry Professionals Deserve Financial Stability Too

Last year at the EconoMe Conference in Cincinnati, Kitty and I were excited to meet many a cool human. Much to our general shock and consternation, many of those cool humans were excited to meet us too! And not just because we were like “Hi we’re friends with Paula Pant.”

This is where we met Barbara Sloan, founder of Tipped Finance. Barbara is a veteran of the tipped workforce: a former waitress, bartender, stripper, and several other tipped professions. More importantly, she’s also a huge money nerd. She has made it her mission to dispense financial know-how specifically tailored to service industry professionals! And she does it all with the fierce determination and tireless badassery we like to see in our women.

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Season 4, Episode 5: “401(k)s Aren’t Offered in My Industry. How Do I Save for Retirement if My Employer Won’t Help?”

Today’s question asker works in the service industry, which means their job doesn’t offer retirement accounts like a 401(k), 403(b), or a pension. This is the case for lots of people! Although these tax-advantaged retirement accounts are a cornerstone of personal finance advice, they’re only offered by 14% of U.S. companies. If you work for yourself, part time, in a tips-based job, or for a very small employer, a 401(k) may not be an option for you.

Does this mean you should just give up on the idea of saving toward your retirement?

When your job doesn't offer retirement accounts, do you just GIVE UP on saving for your retirement? HAHAHA NO

Good news, bitches. You don’t need a traditional retirement account to save towards your retirement. The classic 401(k), 403(b), and pensions are not your only options! Good options for retirement savings exist for everyone, regardless of their industry or employment status. We’re going to tell you about them today.

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If You Can’t Afford to Tip 20%, You Can’t Afford To Dine Out

The tipping system sucks. It should be eradicated. But it’s the system that servers are stuck with to pay their rent this month, so we are where we are.

"We don't have any."

In the United States, we’ve built a tipping system that is designed to replace employer-provided wages with customer-provided tips. This is in opposition to how tipping was originally intended: as a merit-based reward system for service above and beyond the norm. Under this tipping reality, the amount of your tip isn’t a whimsy, but a necessity to servers.

So if you don’t tip 20%, your server isn’t getting paid even close to a living wage. And if you can’t afford to tip 20%… then you sure as hell can’t afford to dine out.

The power dynamics of tipping

There’s a perfect phrase to describe someone who tips low, or not at all: “garbage person.”

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