Uber Technologies Inc. has been squabbling with its drivers over the issue of tipping since the company's inception. Drivers argue tips have always been a part of their trade and should continue to be. Uber thinks that tipping is a relic of the past and wants the idea to wither away. After some back and forth, Uber grudgingly settled on a policy in 2016 that lets drivers take cash tips, but the company still hasn't integrated tipping into the app. This irks drivers. By telling them to take cash instead, Uber risks running afoul of laws governing the ride-hailing industry in more than a dozen states.
Over the last three years, 13 states have passed laws restricting cash payments in some form. While none of the laws explicitly mention gratuity, there's widespread agreement that most -- if not all-- of these rules apply to cash tips. Supporters of these rules have said they're inspired by driver safety concerns. Each state's restrictions are a little different, with some only banning the solicitation of payments and others banning any cash changing hands. Several of these measures explicitly require companies like Uber and Lyft Inc. to tell their drivers that they aren’t allowed to take cash from customers. In the others, the companies’ exact responsibilities are unclear.
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