Here's a tip for ya: This is not a good time to have a job that depends on the kindness of strangers.From cabbies to waitresses to pizza-delivery folks, those who depend on tips for much of their income are feeling the pangs of the sputtering economy. This is one instance in which a trickle-down theory actually holds water: With bank accounts dwindling and the future uncertain, consumers are, well, consuming less, eschewing some amenities and altering their lifestyle choices."They tip less, and they use us less, too," said Blue & White cabdriver Shirley Hines, who's suffering from the double-edged sword of fewer riders and lower tips per ride. "The businesspeople are tipping the same, but your common everyday people are tipping less, watching their nickels and dimes."But what's hurt Hines, 61, most is a drastic drop in ridership. She was loitering outside her cab at one of Minneapolis' designated cabstands. "I'm first up, and I've been here an hour. And I'll probably be here another half-hour, at least," she said.Hines and other Minnesotans actually are fortunate in a sense, as all workers here must make minimum wage. Most states have "tip credit" laws that allow some employers to pay less than minimum wage to those who receive tips.Average tips are down across the board, sources agree, but the bigger problem is fewer customers. Small wonder that there's widespread concern among these employees about the future, starting with a holiday season in which they habitually have gotten a "bump" from their customers."I'm not sure what's going to happen," said Juan Perez, a valet at Minneapolis' Westin Hotel. "The tips are about the same, nothing real dramatic, but we have fewer customers, especially on weekdays."A few blocks away, Peter Atsidakos, 68, owner of Peter's Grill, said several economic factors have reduced his customer base, and thus his wait staff's tip income."Some of our regular customers' offices have moved to the suburbs. Some of them have lost their jobs. More people are working from home," said Atsidakos.This scenario is especially problematic for restaurant servers, most of whose income generally is derived from tips. According to Seattle-based PayScale, the world's largest online compensation database, waiters/waitresses and gaming dealers were the only professions that received more than half their 2007 compensation from tips, at 61 and 59 percent, respectively. Ranking just behind casino and restaurant workers are pizza-delivery drivers (36 percent of their income from tips). They're hurting this year for another reason related to the economy: fuel prices."Tips are a little bit down because we have had to raise our delivery charge (from $1 to $2) earlier this year," said Tim Claiborne, 20, manager of a Papa John's franchise in St. Paul. "The store's getting an extra dollar, but the delivery driver is not. But people tend to think that money is going to the driver. So instead of a $3 or $4 tip, it's often $1.50 or $2.50."In other professions where the workers, not just the owners, benefit from fee increases -- manicurists and hairdressers, for instance -- the results have been similar."We've only seen a slight drop in tips, mostly from men," said Molly Lee Arvidson, 43, owner and hairdresser at Studio 52 in Minneapolis. "We've definitely noticed in the last couple of months that clients are stretching out the time between services, whether it be haircuts or coloring. But in our business, I think we're a little safeguarded because even if times are tough, our clients don't want to look like times are tough."One thing that all workers who rely on tips can count on, even in the toughest of times: their brother- and sisterhood."I'm always really good to valets and all the wait staff, too," Arvidson said. "You know how hard they work, and how much tips mean to them. We all take care of each other."(Distributed by Scripps Howard News Service, www.scrippsnews.com.)
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Those who rely on tips see income fall
Submitted by SHNS on Fri, 10/31/2008 - 13:52
Paying taxes unites us. It also divides us. People can pay five and even six times more in state and local taxes than other folks in similar circumstances making similar incomes.
Who's got your number?
In one of the fastest-growing forms of identity theft, crooks are stealing tax refunds by swiping personal information and using it to trick the Internal Revenue Service.




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