Tipping is a common practice in many parts of the world, where customers provide a small extra payment to certain service sector workers for a service performed or anticipated. However, tipping has not always been mandatory or even expected. The origins and evolution of tipping practices provide insight into the custom’s contested status today.
The origins of tipping
Tipping has its origins in the Middle Ages in Europe. Wealthy aristocrats would provide sums of money to servants as a reward for good service. This practice became known as “tipping” – derived from the term “to insure promptitude” or less formally, “to insure prompt service.” The payment was seen as encouraging servants to provide quick and efficient service.
The practice spread to the upper class in England in the 17th century. It was considered prestigious and fashionable to tip servants. The custom spread further in the 18th century to other service sectors like coffeehouses, barbers and inns. Tipping was still seen as an aristocratic practice though, not common among the general population.
The growth of tipping in America
Tipping became more widespread and democratized in the 19th century in America. There were several factors driving this growth:
- A large servant class – America had many more servants per household compared to Europe. Tipping servants was already an established upper class custom.
- Payments in cash – America used cash payments more commonly than aristocratic Europe. This made small cash tips easier.
- Egalitarian ethos – The democratic spirit in America made tipping more popular across classes.
By the late 19th century, tipping was expected and even required in many service sectors like hotels, restaurants, barber shops and more. A 10% tip was the standard rate.
Criticism of tipping
Despite its growing prevalence, tipping was controversial and critiqued on several grounds:
- It was anti-democratic – Tipping created a servile relationship between customer and worker.
- It was arbitrary – There were no standards or regulations around tip amounts.
- It was discriminatory – Some groups like minorities and women received lower tips.
- It was wasteful – Employers could pay fair wages rather than rely on tips.
This criticism led to anti-tipping movements calling for the practice to be made optional. But these efforts were unsuccessful in reversing the trend.
Factors leading to mandatory tipping
Several developments in the early 20th century led to tipping becoming an entrenched, mandatory practice:
Prohibition and the Depression
The Prohibition era from 1920 to 1933 banned alcohol sales across the US. This ban devastated the restaurant industry which lost revenue from alcohol sales. Restaurants cut server wages, making workers rely more on tips. The economic Depression in the 1930s exacerbated this reliance on tip income.
Rise of tourism
Post World War 2, America saw a major rise in domestic tourism. More middle class families dined at restaurants while traveling. Not accustomed to tipping, they were influenced by restaurant owners to tip a standard 10%.
Chain restaurants
Fast food and chain restaurants expanded rapidly in the 1950s/60s. They enforced tipping norms to ensure consistent service. Tips were shared amongst staff to reduce labor costs.
Federal minimum wage law
The 1966 Fair Labor Standards Act set the first federal minimum wage but treated tips separately. It allowed the minimum wage for tipped workers to be set at 50% of the regular minimum. This institutionalized lower wages for tipped work.
These factors entrenched tipping and made it a mandatory practice to supplement low tipped wages. By the 1970s, a 15% tip was the new norm.
The status of tipping today
Tipping remains a standard practice today in the US across sectors like restaurants, hotels, taxis, hair salons and more. Some key aspects:
- The federal minimum wage for tipped workers is still lower at $2.13/hour compared to $7.25 for other work.
- Average tip amounts have climbed to 20% at restaurants with 15% considered inadequate.
- Most US states allow businesses to count tips towards meeting minimum wage requirements.
- Pressure to tip is extending to new sectors like carry-out orders, coffee shops and more.
While tipping remains mandatory and even spread to new areas, there are also counter trends emerging:
- Some restaurants are adopting no-tipping policies to reduce inequity amongst staff.
- Apps are automating tip suggestions and reducing customer discretion.
- A few states like California do not allow tip credits against minimum wage.
The future direction of tipping norms remains contested. While the custom is firmly entrenched, calls for reform and reevaluation continue given its flaws and inequities.
Conclusion
Tipping originated as an aristocratic custom in medieval Europe and spread to America in the 19th century. It was transformed from a voluntary practice of the wealthy to a mandatory obligation for customers across service sectors. Economic conditions, tourism, chain restaurants and favorable laws institutionalized tipping in the 20th century. The legacy of this complex history continues to spur debate around tipping’s status and future today.