Tipping Culture in America: A Tradition That Needs Change

Tipping has long been a part of American culture, especially in the service industry. It’s common for customers to leave extra money as a token of appreciation for good service. While it may seem like a simple gesture of kindness, tipping in America is far more complex than it appears.

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In many restaurants, for example, workers rely on tips to survive because their base pay is shockingly low—sometimes as little as $2.13 per hour (Azar, 2020). This creates a system where workers depend on customers to provide what their employers should be paying: a fair wage.

But does this system truly benefit everyone?

Why Is Tipping Such a Big Deal?

In the U.S., tipping is often seen as a "thank you" for good service. It allows customers to reward hard-working staff and helps workers earn extra income. However, for many employees, tips are not just a bonus—they’re a necessity. Federal law allows employers to pay tipped workers far below the minimum wage, assuming that tips will cover the rest (Wang, 2010).

This system works well in high-end restaurants or busy bars, where tips can be generous. But for workers in smaller establishments or during slow shifts, income becomes unpredictable. Imagine trying to pay your bills not knowing if your customers will leave a 20% tip—or nothing at all.

Where Did Tipping Come From?

Tipping actually started in Europe, where wealthy individuals gave extra money to servants as a sign of generosity. When the practice came to America in the 19th century, it took on a different meaning. Instead of being a gesture of kindness, tipping became a way to avoid paying workers fair wages (Sablik, 2024).

After the Civil War, many African Americans took low-paying jobs in hotels and railroads, relying on tips to survive. Employers used this system to shift financial responsibility onto customers, a practice that continues today (Desilver & Lippert, 2023).

The Problems With Tipping

The tipping culture in America has many downsides:

1. Unfair Pay

Workers’ earnings depend on the generosity of customers, leading to huge income gaps. On slow days, tipped workers often struggle to make ends meet (Newman et al., n.d.).

2. Discrimination

Studies show that tipping is influenced by biases, including race, gender, and appearance. This creates inequality among workers (Azar, 2020).

3. Customer Pressure

Many customers feel forced to tip, even if they’re unhappy with the service, because it’s seen as a social obligation (Sablik, 2024).

4. Employer Benefits

By relying on tips, employers can pay lower wages, saving money at the expense of their workers’ well-being (Wang, 2010).

What Needs to Change?

Reforming the tipping culture in America won’t be easy, but it’s necessary. Here are some ideas:

• Raise Minimum Wages: Tipped workers should receive the same base pay as everyone else, ensuring financial stability.

• Include Service Charges: Restaurants could adopt a system where a service fee is automatically added to the bill, like in many other countries.

• Educate the Public: Customers need to understand the flaws of the tipping system and why change is essential.

Some businesses have already experimented with these changes. For example, Danny Meyer’s Union Square Hospitality Group eliminated tipping in its restaurants, opting to raise menu prices instead (Sablik, 2024). While these efforts face resistance from customers and workers alike, they represent a step toward a fairer system.

Can America Learn From Other Countries?

In countries like Japan, tipping is almost unheard of. Instead, employees are paid a fair wage, and service charges are often included in the bill. This creates a simpler, more transparent system for both workers and customers (Azar, 2020).

Similarly, many European countries have adopted higher wages for service workers, eliminating the need for tipping. Customers can enjoy their meals without worrying about extra costs, and workers receive steady, reliable incomes (Desilver & Lippert, 2023).

A Fairer Future

Tipping has been a part of American culture for centuries, but that doesn’t mean it’s the best system. It’s time to rethink how workers are compensated in the service industry. By adopting fair wages and more transparent policies, America can create a system that benefits everyone—workers, customers, and businesses alike.

Change may be difficult, but it’s worth pursuing for a more equitable and sustainable future. After all, no one should have to depend on the generosity of strangers to make a living.

Refrensi

Azar, O. H. (2020). The economics of tipping. Journal of Economic Perspectives, 34(2), 215–236. https://doi.org/10.1257/JEP.34.2.215

Desilver, D., & Lippert, J. (2023). Most U.S. adults say tipping is expected in more places these days, but for many the rules are unclear. November.

Newman, E., Paik, S. W., & Tormey, J. (n.d.). Self-ordering Effects on Restaurant Tipping Percentages. 40–55.

Sablik, T. (2024). Tipping : From Scourge of Democracy to American Ritual.

Wang, L. (2010). An Investigation and analysis of U.S. restaurant tipping practices and the relationship to service quality with recommendations for field application. UNLV Theses, Dissertations, Professional Papers, and Capstones. http://digitalscholarship.unlv.edu/thesesdissertations/659