The True Tips Act: Restoring Tipping as a Rare, Honored Reward

You’re at a California coffee kiosk, craving a $5 brew, but the bill hits $11.80 with a “living wage fee” and an 18% “tip” for grabbing a cup off the counter. Tipping’s gone wild, creeping into fast food, retail, gas stations, and barbershops, where it feels like a mandatory tax, not a thank-you. Businesses dodge fair pricing, and some labor unions push these “tips” to inflate worker earnings, boosting their own dues while customers get squeezed. Let’s fix this mess—make tipping a rare, heartfelt reward that honors workers for exceptional effort, not a coerced handout.

The Problem: Tipping’s Become a Shakedown

Tipping was once a 10% nod for a waiter’s charm or a barber’s skill. Now, it’s an expected 18–25% everywhere, even for zero service. In California, fast-food workers earn $22/hour (AB 1228, 2023), often outpacing professionals, yet tip prompts guilt customers into subsidizing wages already covered. Sneaky fees and digital tip screens at counters, gas stations, and retail stores erode trust. Worse, some unions exploit tips to pad dues, pressuring workers and businesses into mandatory gratuity schemes that leave customers feeling fleeced.

The True Tips Act: A Policy for Fairness

1. Demand Honest Pricing
   Businesses must bake all labor costs into menu prices—no “living wage fees” or hidden charges. A $5 coffee that needs $10 to pay workers fairly? List it as $10. Transparent pricing stops businesses from offloading payroll onto customers and cuts off any union schemes tying dues to inflated tip income.

2. End Tip Prompts in Non-Service Settings
   Ban tip prompts on point-of-sale systems in transactional contexts like fast food, retail, gas stations, or self-serve kiosks. Tipping belongs in hospitality—think servers juggling complex orders or barbers nailing your style—not for handing over a receipt or a coffee cup.

3. Scrap Suggested Tip Percentages
   In service settings (e.g., restaurants, barbershops), point-of-sale systems must offer a custom tip field without preset 18–25% options. A clear, no-pressure “no tip” button empowers customers to tip only when truly impressed, keeping it voluntary.

4. Shield Workers from Coercion
   Prohibit businesses, unions, or any third party from mandating tip pooling, automatic gratuities, or tip-based dues. Workers keep 100% of voluntary tips as a direct reward for their standout effort, ensuring tips are a personal honor, not a collective cash grab.

5. Shift the Culture: Tip When Wowed
   Launch a California campaign: “Tip for Excellence.” Educate customers to tip only for exceptional service—like a waiter’s charm or a mechanic’s extra care. Encourage workers to see tips as a rare, prestigious nod, not a right. Promote businesses that pay fair wages (like $22/hour in fast food) so tips aren’t a necessity.

The Impact

• Workers: Earn solid wages ($22/hour in fast food) and feel genuinely honored by tips for going above and beyond, keeping every cent without union interference.

• Customers: Tip freely when inspired—say, for a server’s hustle or a barber’s artistry—not out of guilt at a gas station or kiosk.

• Businesses: Clear pricing builds trust, and fair wages reduce tip reliance, sidelining union-driven tip schemes.

Call to Action

In California, where food workers earn competitive wages, tipping shouldn’t be a stick-up. Businesses, price it right. Customers, tip when you’re wowed. Workers, take pride in earning that rare, heartfelt tip. Let’s make tipping a genuine high-five again—not a coerced fee that fuels union dues or corporate shortcuts.