Colorado is trying to make it possible for more employees — like Walmart and McDonald's workers — to accept tips

businessinsider ^ | May 16, 2023 | Alex Bitter

[dennisw]

A bill passed in Colorado would clear the way for all workers to accept cash tips. Some businesses, including Walmart and McDonald's, don't allow employees to accept cash gratuity. Americans are encountering more requests for tips, even when it isn't clear who is serving them. Top editors give you the stories you want — delivered right to your inbox each weekday.

Workers at businesses like McDonald's and Walmart could soon be able to accept cash tips under a proposed law before the Colorado legislature.

If enacted, the bill would keep an employer "from taking adverse action against an employee who accepts a cash gratuity offered by a patron of the business," per a summary of the proposal. The bill passed the Colorado state house and senate earlier this month and is now headed to Governor Jared Polis for a signature.

Tipping has become more common at shops and restaurants, with many businesses adding a prompt asking for a tip to digital payment screens. But some businesses, including big names in retail, don't allow their employees to take cash tips from customers.

Walmart, for example, has historically forbidden its employees from accepting cash tips, as has McDonald's. Neither company immediately responded to requests for comment on their policies or the Colorado bill from Insider.

Rep. Alex Valdez, a Democrat representing Denver in the state house, told Colorado Politics in February that the bill is aimed at minimum-wage workers struggling to make ends meet.

"We need to get back to being a society that encourages good service and good work," Valdez said. The bill passed both houses largely along party lines, with most Democrats supporting the measure and most Republicans opposed. Democrats control both houses of the state legislature in Colorado.

[bgill]

Better to call the manager to complement the employee’s work. A promotion and raise lasts longer than a one time tip.

[EBH]

In my industry, tips were very common when we started out. But we soon realized the tip structure actually damaged profitability. Unfortunately, all the reservation software automatically puts a tip box on the invoices.

With what we are charging clients in order to get excellent and steady staff wages, I have added to the invoice email and footer that tips are not required or expected. If you want to tip, it is appreciated.

Our staff is paid well. Tips are not always a good thing.

[Chicory]

So true!

Another reason for businesses forbidding tips is that they want to offer the same service to each customer regardless of ability to tip.This especially used to happen with the elderly at grocery stores when they got help loading their groceries. The store did not want the bag boys fighting over a customer who tipped well while ignoring the customer on a fixed income.

[fatboy]

My wife and I made the move in 2017 to get our out of control personal finances under control. Central to that was the creation of a budget and the will to keep at the budget.

Once we realized how much money we were wasting every month and how much consumer debt we had acquired, we proceeded to cut out much of our unnecessary spending until our finances were stable.

5 years later we found ourselves debt free, mortgage paid off and savings in the bank. Our situation to get to this point required that we cut our spending and that meant no eating out for a short time. What we realized is “fast food” isn’t really very fast and that it is way overpriced.

So my message to anyone in the service industry is I can live without you, i can eat better for less and if you want me to tip you, you better do something deserving of that tip. You do well I tip well but don’t expect it just because you have a need or think you are special.

[JimRed]

Say I’m shopping an unfamiliar store, looking for a specific item, and I’m in a hurry. I ask an employee for help, and he gets me taken care of quickly. A few bucks in the form of a “thank you” would not seem inappropriate.

Others would argue that the employee is just doing his job. They wouldn’t be wrong either. This is one of those YMMV topics.