For business travelers, tips are more than etiquette, they’re a built-in part of eating out. But when one employee’s new company banned tipping from the daily meal allowance, things got heated. Instead of just accepting the change, he found a clever way to spend the money that followed the rules and made a point.
On Reddit, he shared how HR told him tips could no longer be expensed. In response, he started eating cheaply and using the leftover budget to buy donuts, coffee, and treats for coworkers wherever he traveled. If management wanted penny-pinching, they were going to get it, just not the way they expected.
A frequent business traveler, barred from expensing tips by a new cost-cutting company, uses their meal budget to buy cheap groceries and treat coworkers to donuts and coffee, planning to feed the homeless next
What starts as a fight over tips is often really a fight over respect and control in the workplace. OP’s case, being told they could no longer expense service gratuities while traveling, illustrates a clash between corporate cost-cutting and employee morale.
From HR’s standpoint, this isn’t unusual. Many companies adopt strict “per diem” or “meal allowance” systems to simplify accounting.
The U.S. General Services Administration (GSA), which sets federal per diem rates, explicitly states that tips are included in the daily meal allowance and not reimbursed separately. Private firms often mirror this structure to prevent abuse or inconsistent tipping practices. To management, a tip feels like an optional expense rather than a required one.
For workers on the road, however, tipping isn’t optional, it’s part of dining in most of North America. A 2022 survey by CreditCards.com found 57% of Americans always tip restaurant servers 20% or more. Forbidding employees to expense tips essentially forces them to cover part of their work meals out of pocket, eroding trust.
Dr. Kimberly Nei, an industrial-organizational psychologist, notes: “Policies that signal distrust, such as micromanaging expenses, often backfire, leading employees to disengage or comply in ways that cost the company more in the long run.” That’s exactly what OP did by redirecting leftover budget to donuts, coffee, and colleagues. It’s a quiet rebellion, but one that underlines resentment.
Business travel is stressful, research by the World Bank shows frequent travel is linked to higher stress, sleep disruption, and reduced productivity. When companies start penny-pinching on basics like meals, employees often feel undervalued, which can worsen burnout and turnover.
Both sides have valid concerns: the company wants accountability, the employee wants fairness. Experts recommend a clear, written expense policy that:
- Defines whether tips are part of the daily allowance.
- Sets a maximum reimbursement percentage (e.g., up to 20% of the bill, a policy adopted by many firms).
- Provides flexibility for cultural norms in tipping-heavy countries.
For employees, the best approach is to document and appeal formally rather than retaliate with passive resistance. A respectful memo, citing federal per diem standards or industry practices, may convince management to reconsider.
Let’s dive into the reactions from Reddit:
These Reddit users questioned HR’s move
Some commenters loved the workaround
This group backed the traveler’s grind
This couple also shared compliance wins
One user praised a no-receipt per diem, noting it motivated travelers and even helped a grandmother.
This small story highlights a big truth about corporate travel: rigid cost-cutting often drives employees to creative, costly workarounds. Instead of banning tips, a basic part of dining etiquette, companies might save more by trusting their workers and focusing on the bigger picture.
For this employee, the message is clear: if management insists on penny-pinching, he’ll still spend every penny. Just not the way they intended.
