# A hotel chain CEO says bigger tips, not raises and bonuses, could stop workers quitting and ease the labor shortage. He's now encouraging guests to op



## observer (Dec 11, 2014)

Hotel CEO: Big tips could ease labor shortage, asks guests to opt in


Creating a "best-in-class" workplace with better healthcare and cashless tipping is more sustainable than giving out bonuses, the CEO of HEI Hotels said.



www.businessinsider.com


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## UberBastid (Oct 1, 2016)

I have always over tipped.
My whole life.
It used to piss wifey off .. she's finally given up.

I take care of people who take care of me.
I ignore people who ignore me.

But, when I walk into a favorite bar or restaurant, I am greeted by name and with a smile and my drink. I rarely tip less than 25%.
If I can't afford to do that I'll buy a giant burrito and a six pack and go home.


.


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## observer (Dec 11, 2014)

I don't think tipping is the problem, most of us do tip.

I think the problem is CEOs expecting consumers to subsidize their employee wages. 

Next up, I expect McDonalds and KFC to set out corporate tip jars for their employees.


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## bone-aching-work (Jul 12, 2020)

Unreal. How did such incompetent people get to these heights of power?


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## observer (Dec 11, 2014)

Another thing to keep in mind is that these are all credit card tips and will need to be reported.

Employees will wind up paying income taxes on the tips while the hotel saves on unemployment, disability, workers compensation and social security.


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## tohunt4me (Nov 23, 2015)

observer said:


> Hotel CEO: Big tips could ease labor shortage, asks guests to opt in
> 
> 
> Creating a "best-in-class" workplace with better healthcare and cashless tipping is more sustainable than giving out bonuses, the CEO of HEI Hotels said.
> ...


Tipping is MANDATORY ON CRUISES & MANY RESTURANTS.

UBER = " NO NEED TO TIP " !

" LOWER RATES MEAN MORE MONEY " !


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## UberBastid (Oct 1, 2016)

observer said:


> Another thing to keep in mind is that these are all credit card tips and will need to be reported.
> 
> Employees will wind up paying income taxes on the tips while the hotel saves on unemployment, disability, workers compensation and social security.


I NEVER tip on a credit or debit card.
Never.

If I use a card, I pay the bill ONLY, and leave the tip in cash.


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## Flier5425 (Jun 2, 2016)

tohunt4me said:


> Tipping is MANDATORY ON CRUISES & MANY RESTURANTS.
> 
> UBER = " NO NEED TO TIP " !
> 
> " LOWER RATES MEAN MORE MONEY " !


Ha! Lower rates mean more rides. More rides mean more money..... for Uber corporate.


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## UberBastid (Oct 1, 2016)

bone-aching-work said:


> Unreal. How did such incompetent people get to these heights of power?


Ever read a book by the title of "The Peter Principle"?
Don't bother, its one of those 70's get-in-touch-with-your-feelings bullshit ... but the premise is good.
The thesis of the book is that 'people get promoted to their level of INEFFICIENCY.' 


Example: 

We have an employee, he is a janitor. He is a great janitor. He does an outstanding job, shows to work on time, sober and eager to work. Everyone he works with or for loves him. His boss retires so ... the logical choice is to promote him. But, the new job requires different actions: people management, payroll tracking, scheduling. 
He sux at these duties. He swings a mop real well, but ... management? He hates the job, and the job hates him.
He can't go back to being a janitor, he is management. His boss has a problem. A mid level manager that hates his job and is not good at it. What does he do? He can't fire him; he's been 'with the company' for a decade.
He recommends him to A PROMOTION ... why? Because then he is not THAT supervisors problem any more.
He keeps getting bumped up because he can't do any of the jobs well. But, the higher he goes -- the worse he is. Can't go back to swinging a mop; can't do the job he's hired to do ... what do we do?
"PROMOTE HIM and get him the hell outta MY department."

I know for a fact that this happens. I have done it. 
People get promoted to their level of inefficiency.

We've all worked with him (or her).

.


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## observer (Dec 11, 2014)

I'm curious.

For those who have worked for tips and reported them, did you also have to pay UI, disability or SS taxes as well as income taxes?


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## observer (Dec 11, 2014)

UberBastid said:


> I NEVER tip on a credit or debit card.
> Never.
> 
> If I use a card, I pay the bill ONLY, and leave the tip in cash.


I don't either. 

When we used to get food delivery I'd give a cash tip. I could tell the drivers were surprised.

We stopped getting food delivery when the fees became outrageous.

My daughter checked today for lunch, the meal was ten dollars and the delivery fees were another ten dollars.

She texted me to get something on the way home.


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## UberBastid (Oct 1, 2016)

observer said:


> I don't either.
> 
> When we used to get food delivery I'd give a cash tip. I could tell the drivers were surprised.


I just feel like ... and, I know, I'm old ... and us OG's have a way of doing things, and a way of thinking and yer not gonna change me OK? .... 

But, I just feel like a tip is a offer of thanks ... truly a 'gratuity'. It is a show of my gratitude. And, there is no need or want for me to include any third party in that. It is between me and the person that I am tipping It is NO body else's business. It is private business.

So, I give you American money, and you do or declare or whatever you want to do or declare with it. It's no body else's business. Including your boss, my bank, the IRS, your mamma, my wife ... it's between you and me.


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## Taxi2Rideshare (May 17, 2018)

observer said:


> I'm curious.
> 
> For those who have worked for tips and reported them, did you also have to pay UI, disability or SS taxes as well as income taxes?


It's not that complicated.

Employers report a percentage of a tip earner's wage "as tips" in their W2s and the IRS treats it as regular income. I believe employers report 30% (correct me if I'm wrong) of earnings as additional tip income on a tip earner's W2s (on a separate box from regular income) even though these same tip earners earn 5-10% in tips when they're not getting stiffed.

Now, here's where it gets shady: Current labor laws allow employers to pay below the minimum wage for tip earners so long as those tips add up to or exceed the minimum wage. Employers are required by law to monitor employees tips to make sure that the combined total (low wage+tips) meet the minimum wage, but most tip earners (99.999%) don't do anything about it even though they can file claims against their employers.



> (CEO quote from article)
> 
> ..
> "I call that an unsustainable competitive advantage. In other words, you're at a competitive advantage for an hour, until somebody (another hotel operator) decides to match it (your higher pay)," he said.
> ...


These guys love it when the workforce competes for their low wages, then are the first to complain when they dish out the higher incentives just to keep their existing workforce. I say it's the market at play, weeding out the greedy players. Gotta love it -lol!


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## observer (Dec 11, 2014)

Hotel Chain CEO Wants Guests To Tip More, Rather Than Raising Wages


With a major labor shortage impacting hotels, here's why one industry CEO thinks the only solution is bigger tips, and not higher wages.




onemileatatime.com


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## observer (Dec 11, 2014)

One of the comments at bottom of article.

"look at this review of this moron on Glassdoor: "The COO, Ted Darnall, came to visit our property and the words out of his mouth was, "We don't care about guests, we don't care about surveys. We are a Real Estate Company and value of the land beneath us is all that matters." Then he spent the next two hours blabbing on about how great he is and made us all stand up to listen to his borderline sociopathic speech. Some leadership... Advice to Management: Fire Ted Darnall and get a COO in that isn't a sociopath/dictator. Allow people to LOVE their job, not just work them to the point of a nervous breakdown."


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## Guido-TheKillerPimp (Jan 4, 2021)

UberBastid said:


> a giant burrito and a six pack and go home.


Wifey doesn't get pissed at that? 😂


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## Nats121 (Jul 19, 2017)

observer said:


> We stopped getting food delivery when the fees became outrageous.


And yet the drivers are paid next to nothing.

Where TF is all the money going? It certainly ain't going to the drivers.


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## observer (Dec 11, 2014)

Nats121 said:


> And yet the drivers are paid next to nothing.
> 
> Where TF is all the money going? It certainly ain't going to the drivers.


It wasn't too bad when fees were reasonable but now it could cost 15 bux (including tip) on top of a 10 dollar order.


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## SHalester (Aug 25, 2019)

well, you know speaking as a several times a week food ordered there is a way to escape some of the fees..... Join their 'program'. With GH is it called 'plus'. No deliveries fees with those restaurants that honor it. As long as you do a few order a month it pays for itself. 

The removes the del fee, but in calif we have the special 'extra' charge thanks to Prop 22 'driver benefits'. that's seems to be $2.50 or more per order. What is odd some restaurants don't charge it, which is a mystery.


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## UberBastid (Oct 1, 2016)

Guido-TheKillerPimp said:


> Wifey doesn't get pissed at that? 😂


No, hell no.
She likes tomato beer with her burrito ... _shudder_

We go out a lot. Prolly half the time we eat dinner we eat out.
Sometimes fancy, sometimes not so much.

Hard to cook for two people .. especially two old people.
And leftovers are good for the next night.


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## SHalester (Aug 25, 2019)

UberBastid said:


> Hard to cook for two people .. especially two old people.


nah, hard to cook for 2 people period. Wife unit works modified swing shift, so my son and I our on own for dinner during the week. When she first switched I tried cooking but we always have way too much left over and ended up tossing it. And since Covid was a thing food orders here we come. No left overs and son eats it all. Win win.


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## Guido-TheKillerPimp (Jan 4, 2021)

SHalester said:


> tried cooking but we always have way too much left over and ended up tossing it.


The fact that you were the cook, is grounds enough for deeming it garbage!


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## ANT 7 (Oct 14, 2018)

I do not patronize businesses that encourage this.


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## ScoobyDooFan (Oct 25, 2021)

****ing asshole. He wants customers to pay his employees, **** him.


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## REX HAVOC (Jul 4, 2016)

It reminds me of how Walmart pays their workers a minimum wages and then coaches them how to get get food stamps and medicaid.









Walmart’s Food Stamp Scam Explained in One Easy Chart – Jobs With...


Walmart, the nation’s most profitable corporation, may also be the greatest beneficiary of the taxpayer-funded Supplemental Nutrition Assistance Program (SNAP), commonly referred to as food stamps. But how has Walmart managed to make so much money off of taxpayers? For the short answer, take a...




www.jwj.org


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## The Entomologist (Sep 23, 2018)

observer said:


> I don't think tipping is the problem, most of us do tip.
> 
> I think the problem is CEOs expecting consumers to subsidize their employee wages.
> 
> Next up, I expect McDonalds and KFC to set out corporate tip jars for their employees.


Why shouldn't they? it's either the worker or the client who pays for it, CEO's are the smartest people on the planet (or the luckiest to test the limits of human stupidity).

To think a simple boycott could RUIN any of these corporations attempting to cover their losses through client or worker, if the shit isn't feasible, don't ****ing create the illusion, charge what has to be charged and let the people see if they keep using it or not, there should be laws against creating business models that aren't feasible and rely on covering loss through loopholes in the laws and designs, like misclassification and tipping.

****ing smokes and mirrors, that's all these scumbag corporations are.


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