Today, Explained

Is tipping fair?

13 snips
Jul 27, 2025
Sophie Miyoshi, executive director of ROC D.C., and Tony Tomelden, owner and bartender, dive into the murky waters of tipping. They discuss the struggle for fair wages in the restaurant industry and the legislative push for higher minimum wages. The conversation uncovers the history of tipping in America, its impact on workers, and the ongoing debate about taxing tips. With personal stories and listener insights, they examine the complexities of compensation and the cultural attitudes surrounding gratuities.
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INSIGHT

Tipped Minimum Wage System Flaws

  • The federal tipped minimum wage is $2.13 an hour, relying on tips to meet regular minimum wage standards.
  • Enforcement is weak, leading to wage theft and hardship for tipped workers.
ANECDOTE

Bar Owner's Wage Increase Story

  • Tony Tomelden, a bar owner, faced payroll doubling and had to raise prices due to tipped wage hikes.
  • His business closed because increased labor costs combined with lower sales became unsustainable.
INSIGHT

D.C. Restaurants Stay Resilient

  • Despite wage increases, D.C.'s restaurant scene has not collapsed; full-service restaurants have slightly increased.
  • This counters claims that tipped wage hikes necessarily destroy restaurants.
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