Approaching A Tipping Point?

One NYC restaurant is doing away with gratuities:

Sushi Yasuda, an upscale restaurant in New York City, is attracting attention for its decision to get rid of tips for waitstaff. Instead of a line for diners to write in a tip amount on their receipts, Sushi Yasuda has printed the following statement: “Following the custom in Japan, Sushi Yasuda’s service staff are fully compensated by their salary. Therefore gratuities are not accepted.” Indeed, Sushi Yasuda’s waitstaff enjoy rare stability in an industry that justifies its long-standing minimum wage of $2.13 an hour by factoring in tips. …

Sushi Yasuda’s benefit package is also a rarity in the industry. Nearly 90 percent of servers do not get health insurance through their employer, a dangerous status quo many restaurant chains have fought hard to maintain in the face of new Obamacare requirements. Other upscale restaurants have also eliminated tipping, instead using a flat service charge that can then be distributed fairly among the staff. But it remains to be seen if this practice will become the norm or stay the exception in an unjust industry.