Some workers continue to receive the "subminimum wage" of $2.13/hour, despite the ongoing debate about tipping.

Just about everywhere you go, whether it's a restaurant, coffee shop or using an app on your iPhone, you're being asked to tip for just about everything.

When dining at a restaurant, tipping isn't optional, but it's different when you're not tipping the worker at a toy shop or clothing store.

Since the start of the Covid-19 pandemic, the lowest level of tipping at full-service restaurants was recorded in the second quarter of 2023, with tipped workers who operate payment tablets feeling the brunt of tip fatigue.

Tipped workers in the 16 states that follow the federal minimum wage are experiencing particularly intense pain.

While the federal minimum wage is $7.25 per hour, tipped workers receive $2.13 per hour, which is lower than the minimum wage. This difference, $5.12, is known as a tip credit. If a tipped worker does not receive $5.12 in tips, the employer is legally obligated to pay them that amount.

In most states, tipping in a restaurant reduces the worker's wage rather than adding to it, as most consumers are unaware, according to Saru Jayaraman, president of One Fair Wage advocacy group.

Watch the video above to learn more.