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Why The U.S. Won’t Do Away With Tipping

It’s no secret that we’re tipping like never before - everywhere and for everything. While it can certainly be frustrating, there’s a greater issue at hand: There are 5.5 million tipped workers in the United States and out of all 50 states, 43 have a lower minimum wage for these workers than for non-tipped hourly workers. Many states adhere to the federal minimum wage for tipped workers, which has remained at $2.13 for more than three decades. That means these workers rely on tips to make ends meet. In 2022, more than one million workers made the federal minimum wage of $7.25/hour or less. And with tablets at every establishment and more workers outside of just tipped workers asking for tips, servers and bartenders are bearing the brunt. In the second quarter of 2023, tipping at full-service restaurants fell to the lowest level since the start of the pandemic. Watch the video above to learn more. Chapters: 1:50 Who relies on tips 5:47 Challenges 8:59 Hospitality included 14:22 The debate Produced, Shot and Edited by: Emily Lorsch Edited by: Darren Geeter Senior Managing Producer: Tala Hadavi Animation: Jason Reginato Camera by: Jeff Bush Additional Footage: Getty Images » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Subscribe to CNBC PRO: https://cnb.cx/2NLi9AN #CNBC Why The U.S. Won’t Do Away With Tipping