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I think this policy is a mistake. I think the US should be moving away with tipping, and this will just make it harder. European restaurants work this way and don’t seem to be suffering.
I hate having to judge a waitress, barber, or driver after receiving service then doing math on the bill. Worse yet is housekeeping at a hotel; you’re expected to leave them a tip when you don’t even know what kind of job they’re going to do. Just charge me on the bill whatever it costs to pay these people fairly and stop making me make up the difference.
In general I don't usually tip because of this. It's not my place to pay them a living wage; it's the employer's job. If more Americans would take this stance and make it impossible for employers to hire at sub-minimum wages; this culture would go away.
I have to receive more than above-and-beyond service to even consider tipping; and then it's only when I have the funds to do so. I don't appreciate tipping pressure either; and I will actively not tip when people are pressuring me to do so; or when the execution of the transaction itself needlessly provides a prompt to tip when there's really no reason to tip anyone who doesn't care or provide more than their basic job in service.
Frequently there's no reason to tip in most service contexts; as there's no additional work being done; or assistance being asked of the employee. In some limited contexts there's justification for tipping; but it's very limited justification, and it really comes down to a couple questions: 'Did the employee provide a service that was far more exceptional than would be reasonably expected of them to perform', and, 'Was that performance given merely because it was asked or needed to accommodate you as a customer and your immediate and obvious needs'?
In some contexts, in some jobs, those opportunities to go above and beyond do exist. In those contexts...tip if you feel it's appropriate. In many other service jobs; the employer has brutally optimized and taken complete management over the efficiency and tasks being performed and; as such; they should assume the responsibilities of ensuring that an employee gets paid sufficiently, but also gets opportunity to get paid for reliable, superb or consistent superior performance.
What sucks is your act of defiance only screws over the worker.
The employer got paid no matter what.
The worker is expected to refuse to work with companies insisting on the tipped+subpar pay schema. They chose to enter into the agreement anyways.