Do You Leave a Tip at Self-Checkout Machines? Shoppers Are Confused
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Here's your money briefing for Tuesday, May 9th. I'm J.R. Whalen for The Wall Street Journal. It's pretty common for a shopper to tip a service worker who gets them their morning coffee or who cuts their hair. But is it fair game for self-checkout machines at places like airports and stadiums to ask you to leave a tip?
Shoppers are perplexed. Some of them are really angry. They say that tipping is everywhere and they're starting to get fatigued by seeing so many tip screens.
We'll talk to Wall Street Journal reporter Rachel Wolf about who you're tipping and where that money actually goes. That's after the break.
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Self-checkout machines have streamlined the process for a lot of shoppers to pay for their items and be on their way. Wall Street Journal reporter Rachel Wolf is with us to discuss how some of those checkout machines are now asking for tips and stopping shoppers in their tracks. So Rachel, is this something new?
What is 'tip creep' and why are shoppers confused by tips at self-checkout?
And how much in tips are self-checkout machines asking for?
This is very new. Self-checkout is new. So the idea of tips at self-checkout is even newer. And self-checkout machines are asking for the standard 15, 20, 25 percent. It is really shocking to customers who say they don't know what to do.
All right. But we normally see a range of tip options when you're actually tipping on service. But the machine usually just provides one level of service. Is that confusing people?
People are definitely confused why a machine should get a tip. The companies for their part say that the tips still go to the employees who are stocking the shelves or doing the other things to make it possible at restaurants. It's going to the cooks. So it's not just going to the machines for the companies that I spoke to. Though some of the labor experts that I interviewed worried that because there aren't the same protections for tipped robots as there are for tipped employees, that companies could use this as a way not to give tips to employees.
Oh, so there could be a bit of an undercurrent here.
It's possible. Tips legally have to go to an employee. Things that are classified as a tip on your check, there are laws that say those wages need to go to employees. There have been plenty of lawsuits when companies have not followed those laws. And this is just sort of uncharted territory. So the experts are divided on how this all works. And again, the companies that I spoke to did say that the tips go to employees. And what's happening is that tips are away. Again, some labor advocates say for companies to subsidize employee pay rather than paying them more. They're putting the onus on consumers to bolster their wages.
Now, you spoke with some shoppers who've experienced this. How's this going over with them?
Shoppers are perplexed. Some of them are really angry. They say that tipping is everywhere and they're starting to get fatigued by seeing so many tip screens. They emphasize that they always tip for service.
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