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Extra money to the employee. It's supposed to be optional and a mark of good service, and typically was only wait staff/bartenders (for food service; there are other tipped jobs), but the hourly wage for said staff ended up becoming a fraction of the main wage and tips basically became required (in my day, $2.13/hour (though if, for example, we literally had no one come in, the company would make it up to the actual (non-tipped) minimum wage) versus I think around $7.15 an hour or something (it may have been less at the time). When I was a kid (1980s), we were always taught about 10-15% of the amount of the bill. These days, it's often cited as 20-25%. In some states, the server wage is still really, really low (a quick search shows Oklahoma (state) is still at $2.13 with non-tipped minimum wage at $7.25/hr).
Add to that that many of the wait/bar staff are also having to pay idiotically-high US health insurance plus the actual cost of healthcare and their employers may or may not have any contributions to the plan. Then more if they want silly things like vision and dental insurance. The whole thing is a trainwreck and one of the reasons I no longer live in the US.
This just made me not want to visit US ever. And especially not live in it.
Thanks for the eye opener.
If you did visit, you would also tip a taxi driver if you used a taxi, hotel staff if they take your bags to the room (edit: and, increasingly, the cleaning staff, but there's no set expectation on that yet), etc., etc. I just covered the food/beverage side, heh.
You are really trying to make it so I have even less will to even think about it ever.
Tnx.