|  Some restaurants have replaced tipping in favor of “ service included ” pricing or fees , but it might not be the right solution for every hotel property .  Tipped income must be replaced , whether by higher room rates or a service fee . Laws covering service charges often specify who can share in fees and whether an employer can retain some of it , says attorney Bernice Blessing , associate at Garvey Schubert Barer in Seattle .  The Waldorf Astoria in Chicago pays hourly employees , who don ’ t take gratuities , a 25 % |  The Waldorf Astoria in Chicago  to 30 % premium over market wages and folds the additional wages into rates . “ But we ’ re still very competitive in our set ,” says Todd Chambers , managing director , adding that higher pay attracts higher-caliber talent .  Expect a learning curve . Daniel Hostettler , president and group MD of Rhode Islandbased OHM Collection , says it ’ s easier to introduce a no-tipping rule either in a new-build or when new  management steps in . Typically , though , staff is trained to politely decline tips and explain the policy . At OHM ’ s four luxury resorts , tips are forbidden ( aside from the restaurants ) and the consequences of accepting gratuities include possible dismissal .  Guests will need training , too . At The Siam in Bangkok , General Manager Nick Downing often fields questions about the proper amount to |  tip , and he uses the exchange to educate guests . “ I explain that while it is nice to recognize someone who may have stood out providing exceptional service , we also have a service charge to recognize those behind the scenes who make everything possible for the team in front of the guests ,” he says .  Retention could be challenging . “ We do an annual wage survey comparing us with the competition , and we |  can show employees at the end of the year how they are making more at our property ,” Hostettler says .  It can encourage teamwork . OHM Collection uses an algorithm based on guest satisfaction scores by department and other factors to divvy up most of the US $ 38 resort fee . “ The staff goal is aligned with the hotels ’, and they are making more money as we are ,” Hostettler says . |