The tipping culture in Canada is currently under scrutiny like never before. A recent undercover investigation conducted by CBC's Marketplace spotlighted the growing trend of tip prompts across various businesses and revealed unsettling findings about how those tips are handled.
Over the years, Canadians have increasingly found themselves nudged to leave gratuities across numerous transactions. From sit-down restaurants to fast food joints, and even retail outlets, the expectation to tip has expanded significantly. Just recently, Marketplace investigators visited 100 different businesses to understand this phenomenon more deeply.
The hidden-camera investigation showed almost 72 out of 100 places prompted customers for tips, ranging from as low as five percent to as high as 30 percent. When using payment terminals, many found themselves faced with the not-so-subtle question of how much they would like to tip. This practice, according to experts, raises questions about fairness and transparency.
A troubling insight from this investigation highlights workers' ownership over their tips. Many employees across Ontario reported not keeping their tips, something that's supposed to be illegal under provincial laws intended to protect workers' earnings. Six fast-food establishments were particularly noted for this issue during the investigation. Michael von Massow, a professor at the University of Guelph, commented, "Some of those places are actually breaking the [employment standards] law, but it's easy to hide."
The findings from Marketplace show the mounting pressure on consumers to tip, with data indicating Canadians are leaving larger gratuities than before. Square, the payment services company, noted the average tip on their platform had climbed from 16 percent in 2019 to 20 percent this year. This uptick corresponds with broader shifts in tipping culture.
But why are we seeing such dramatic changes around tipping? Experts say the societal norms have evolved as more consumers use credit and debit cards for daily transactions, which typically include tipping prompts. The presence of these prompts greatly amplifies the expectation to leave additional money. Urban areas and businesses seem to adopt tipping practices more than before, proving there's no longer any hard and fast rule about when or how much to tip.
The situation becomes even more complex when factoring the misunderstanding surrounding the rules about tipping similarities across provinces. Some provinces like Prince Edward Island and Quebec prohibit employers from taking any cut from tips. Others like Ontario and British Columbia only allow employers to take tips if they are directly providing customer service. But for many provinces, the narrative is murky as no clear rules exist.
Canadians are also tipping on the pre-tax total, often without realizing it, leading to confusion about how much their gratuities truly amount to. This situation is prompting concerns among academics and advocates alike, pushing for clearer legislation on tipping as well as urging consumers to become more informed about where their money goes.
"It's utterly ridiculous to tip for services like auto repairs, wedding dress consultations, jewelry purchases, and self-service checks," says Marc Mentzer, human resources professor at the University of Saskatchewan. He believes this practice detracts from the expectations surrounding tips, as these services do not involve human interaction or inherent service. "Where does this take us? Will we be expected to tip when buying groceries?" is something many are now pondering as the pressure around tipping becomes more widespread.
Among the businesses investigated, Marketplace made the strategic decision to withhold names to protect the employees who spoke out against the practices they experienced. Yet, the desire for more oversight has led to increased complaints from employees about their tips being withheld. The Ontario Ministry of Labour received 796 claims from workers this year alone, indicating significant frustration among workers about their withheld earnings.
Wage advocates are ringing alarm bells and advocating for more substantial tip protection laws to help workers understand their rights and prevent exploitation. Active movements are observed, where workers and advocates alike recognize the significant disparities faced by employees, and how nuanced aspects of tipping put them even more at risk.
Sydnee Blum, leading the Halifax Workers' Action Centre, speaks on the travesty of tip theft, highlighting substantial figures: "It's not just workers at fast food industries or high-end restaurants--it really is widespread." This sentiment resonates within communities, urging for legislative changes to safeguard workers who rely on tips as part of their overall livelihoods.
The tipping dilemma even stretches to the service industry. Notably, since 2022, Ontario has ensured tipped employees receive at least minimum wage, yet many significant shifts remain, particularly concerning establishment practices and consumer expectations. With advocates shining light on these circumstances, calls for legislative changes grow louder.
Though some business leaders express concern about the overwhelming tipping culture they’ve observed, there remains uncertainty on how to solve this problem. It's clear tipping practices continue to evolve, influenced by changing societal norms, technological advancements, and the collective experiences of service workers, which sets the stage for long-standing debates about tipping culture and working-class wage rights—a discussion we can expect to hear much more of as the tipping culture endures changes.
With rising wages and growing public awareness about workers' rights, the debate surrounding tipping culture isn't likely to simmer down anytime soon. The necessity for consumers to ask workers where their tips go is becoming more prevalent, providing clarity for all parties involved.
Will businesses start to openly discuss how tips are allocated? Will transparency become the norm? These are questions the public will need to keep close tabs on as tipping culture morphs moving forward.
