Tipping in Iowa Might Be About to Change in a Big Way

Growing up, I always understood the importance of treating the servers at restaurants with respect.

You should always say "please" and "thank you," not be completely rude to the person bringing you your food, and you should ALWAYS tip at least 20%.

How My Mom Inspired My Respect for Servers

My mom spent the majority of her life as a waitress in New York City and in Miami, Florida. She would bust her back to provide stellar service, even to the grouchiest customers.

Once I was born, she would spend most of her time at home taking care of my sister and me. When I was very young, there were a few years where she would pick up weekend shifts at a neighborhood Irish pub.

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This was partly to make some extra cash, but I also think it was her way to get out of the house and do something for herself.

During those weekends, my dad would have no clue what to cook us for dinner, so he'd take us to the eatery my mom worked at for a bite. She would roll her eyes at my father for the move and for spending money when she was trying to make a few extra bucks.

While I was there, sitting on a booster seat that my mom brought over, and coloring enthusiastically on the kid's menu, I actually SAW how hard she worked.

I knew that she did a lot for our family, but I assumed that was just because she was a mom.

All moms worked hard and were quick to put the food on the dinner table and make my lunches for school.

No, my mother was actually a freaking awesome waitress!

She somehow managed to take care of an entire section at this bustling restaurant while also striking up conversations with customers like they were long lost friends. My mom was almost a stereotype for hard-working waitresses in New York.

Don't even get me started on when she would bring out trays of food like it was nothing! It was like Van Gogh painting 'A Starry Night.'

I still saw the subtle way she would grind her teeth when a customer ticked her off or when someone in the kitchen messed up an order. Then, the next day, I’d watch her over my bowl of Froot Loops, rubbing her sore feet after running around the restaurant for hours.

Why Tipping and Fair Pay Matters

So, I think it's pretty easy for me to say that people in the service industry are treated like garbage sometimes and deserve way more than what they are making.

According to a report from Salary.com, the average server or bartender in Iowa makes around $21,740 a year. The best-paid 25 percent can make around $24,641.

My mom always told me that the tips servers receive during a shift are a vital part of their income.

The Iowa Bill That Could Help Servers Keep More of Their Tips

There's a new bill that is being pushed in the Iowa Legislature that will help servers bring home a bit more after a shift.

People who work in the service industry (restaurants, salons, hotels) rely heavily on tips to make ends meet. Tips are considered taxable income, according to the IRS.

Employees are required to report their tips to their boss by the tenth of the month "following the month the tips were received."

If you receive twenty dollars or less in tips a month, you don't have to report it to your employer.

What House File 293 Would Change

House File 293 will exempt all income from cash tips from Iowa's flat income tax rate of 2.8%, according to reports.

“We want to make sure that money goes back to their pockets so they can focus on what we all consider the American dream, the Iowa dream, raising their families, owning a home and owning reliable transportation to get to and from work,” said Rep. Eric Gjerde, of Cedar Rapids in a press conference earlier this week.

Is This Specific Tipping Tax Bill Likely to Pass in Iowa?

This particular bill will probably not move forward. House File 293 is a largely Democrat backed piece of legislation.

A Similar Bill Is on the Table

It was originally introduced to the Iowa House in mid-February and has still not received a subcommittee assignment, according to the Gazette.

Republican lawmakers introduced a nearly identical bill that will likely move forward.

So, at least the issue isn't dead on arrival!

This is still a developing story. We will keep you updated as more information comes out regarding this new piece of legislation.

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