Dive Brief:

• The idea of eliminating tipping among restaurant workers is not new, but a major NY-based company, Union Square Hospitality, has decided that starting in November, it will roll out an across-the-board elimination of tips at every one of its 13 full-service venues.
• Rather than one restaurant, this will mark the first time the policy has been implemented at a fairly major restaurant group, the New York Times reported.
• It also will mean employees at Union Square Hospitality will earn a "fair wage" rather than depend on the ebb and flow of tipping.

Dive Insight:

Union Square CEO and founder Danney Meyer explained the move in a letter posted at the company's website.

According to the Times, growing concerns with the wage gap is one key driver for restaurateurs who have eliminated tipping. Others believe performance variables such as race/age/gender, customer attitude, even the weather should not determine a worker's paycheck. Also, the Times reports, there have been several class-action lawsuits over tipping irregularities (restaurant owners keeping portions of tip money, mainly) -- type of publicity the industry needs to avoid.

For the HR leaders working in the U.S. hospitality industry, there may be quite a bit of work ahead, depending on whether this trend gains traction across the country.