As millions of World Cup visitors arrive in the United States, many are encountering the practice of tipping, which is not customary in several countries. Restaurants in World Cup host cities are implementing a 20% automatic gratuity on bills to assist international guests who may not be familiar with tipping customs. Teneshia Murray Butler, owner of T's Brunch Bar in Atlanta, stated that the gratuity was increased from 18% to 20% for the event.
Tipping is a significant part of worker compensation in the U.S., where tipped employees can earn as little as $2.13 per hour, provided their tips bring their earnings to the federal minimum wage of $7.25. Saru Jayaraman, president of One Fair Wage, noted that the practice of tipping in the U.S. has historical roots linked to maintaining low wages for workers, particularly in the context of racial inequities.
Jessica Ordeñana, a bartender in New York City, shared an experience where a group of foreign fans left a $4 tip on a $300 bill, highlighting the challenges faced by service workers who rely on tips. David Cooper, director of the Economic Analysis and Research Network, pointed out that research indicates lower poverty rates among tipped workers in states that pay full minimum wage plus tips compared to those following the federal tipped minimum wage.
In Los Angeles, unionized workers at SoFi Stadium authorized a strike prior to the tournament but reached an agreement with management, resulting in a 30% pay increase for tipped workers. Jayaraman expressed hope that the World Cup would raise awareness about the vulnerabilities faced by tipped workers and the broader issues of wage insecurity.