12 Things You Probably Don’t Know about Tipping (But Should)

Tipping might seem like a straightforward way to show appreciation and help workers make extra money, but there's a lot more to it than meets the eye.

For some, the act of tipping has become contentious. Many customers feel employers should pay adequate wages and not outsource that responsibility to customers.

Here are some surprising facts about tipping in the U.S. and around the globe.

Tipping in America started in the 1850s as a custom imported by wealthy Americans who wanted to feel genteel and aristocratic.

The practice is rooted in a master-serf dynamic and provides a way for the upper classes to reward the lower classes for performing a (usually menial) task exceptionally well.

The practice caught on and became deeply ingrained over the years.

After the Civil War, newly freed former slaves often worked in service roles. This included jobs as restaurant servers, bellhops, and railroad porters.

Many employers didn’t pay these workers, assuming that tips would make up their wages. This practice effectively perpetuated a form of economic exploitation many liken to slavery.

A class of people were paid to bow, scrape, and be subservient to a dominant, monied class.

The dynamics of tipping have always been racially fraught. Historically, employers justified low or sparse wages to Black workers by reasoning that tips would make up the difference.

This has resulted in a persistent disparity in earnings of those who work in the service industry versus other “stable-wage” jobs.

While nouveau riche Americans took to tipping like ducks to water, it was initially unpopular with the masses.

Many people found tipping to be undemocratic and unAmerican. In the early 1900s, many states passed laws to abolish tipping, which they viewed as a form of bribery, extortion, and exploitation of workers.

These laws, however, were short-lived and eventually overturned.

Tipping as we know it today became solidified during President Franklin D. Roosevelt’s New Deal era.

Amid hard times, legislation allowed employers to pay commonly tipped workers less than federal minimum wage, as long as employers paid workers the difference if tips fell short of hourly minimum wage.

Nearly a century after the Great Depression, this system has persisted. The federal minimum wage for tipped workers is $2.13 an hour.

Two-thirds of tipped workers are women, which may contribute to the gender pay gap. Some believe that the practice of tipping shows the diminished value America has placed on women and people of color over the past 150 years.

Dominating a tip-dependent profession places women in an economically vulnerable position, including situations where they may be expected to tolerate inappropriate behavior to secure better pay.

Tipping is commonplace in the U.S., but that’s not true in other parts of the world. Countries such as Switzerland and Japan do not have a tipping culture.

In Japan, tipping is not proper. Servers are known for providing exceptional service to all customers without gratuity or service charges as an added incentive.

In cultures where tipping is not the norm, service charges like server pay are included in the bill.

Republicans tip workers more often and at higher rates than do independents and Democrats, according to a CreditCards.coms survey.

Nearly two-thirds — 59% — of Republicans regularly tip more than 15%, followed by 56% of independents and 46% of Democrats.

Like politics, gender also plays a role too. Women generally tip more generously than men and leave a higher percentage of gratuity on their restaurant bill.

Women leave a median tip of 20%, according to CreditCards.com. That compares to just 16% for men.

Baby boomers are the best tippers and millennials are the worst. More than half of seniors regularly tip 20% or more at restaurants, according to CreditCards.com.

On the other hand, younger generations are more likely to not “believe” in tipping culture. A full 34% of millennials want tipping to become obsolete, according to a Civic Science survey.

Perhaps as a result, 59% of millennials admit to regularly leaving tips of 3% or less.

Servers and hairstylists consistently earn the best gratuities in tip-based occupations. They average tips of around 16% and 13%, respectively, according to a Discover survey.

Tips for takeout cashiers and casino dealers average 4% to 6%, respectively, according to Discover.

With takeout, the role requires less personal interaction. Additionally, a customer is already choosing to pick up their order to avoid paying delivery charges and a driver tip.

Casino dealers may have more interaction with customers, but those losing money at the gambling table are less likely to tip. Luckier players may offer a small gratuity from their winnings.

The rise of digital payment systems has led to "tipflation," where customers are prompted to tip for a wide range of services that never required tipping before, from picking up dishwasher soap at the store to picking apples at the apple orchard.

Whether or not tipping is out of hand is a personal call. Your feelings on the subject are likely tied to your age, gender, income, and occupation. But being prompted to leave tips all of the time can be confusing and downright irritating.

Tipping has a long history in the U.S., but it has become more controversial in recent years. Each person has to decide how they feel about this practice and to tip accordingly.

Remember that tipping helps many workers get ahead financially. So, think long and hard about tipping practices and make the decision that is right for you and the person serving you.