The Racism Behind Tipping Culture

Tipping in America, introduced by wealthy travelers returning from Europe in the mid-1800s, became a fixture of the service industry after the Civil War, primarily to avoid paying fair wages to newly freed Black workers. Although met with public resistance as a classist practice, it was cemented by businesses, like the Pullman Company, who paid workers subminimum wages, leaving them to rely on tips. The practice has evolved into a significant part of the American economic model, with a federal subminimum wage for tipped workers allowing employers to pay significantly less than the standard minimum wage, making tips effectively a core part of the workers' pay.

Origins in Europe and Introduction to America

Tipping has roots in medieval Europe as a small gift from wealthy patrons to servants for good service.

During the 1850s and 1860s, wealthy Americans traveling to Europe encountered this custom and brought it back to the United States, attempting to mimic European aristocratic traditions.

Post-Civil War and Racial Exploitation

Following the Civil War, the practice was embraced by the hospitality industry to avoid paying fair wages to newly emancipated Black workers.

Employers hired Black men and women for service positions but offered them no or extremely low wages, making them dependent on tips from customers for their livelihood.

The Pullman Palace Car Company is a noted example, openly stating they paid their Black porters sub-living wages, as their earnings were expected to come from tips.

Public Resistance and Legal Battles

Initially, many Americans viewed tipping negatively, seeing it as an un-American, classist practice incompatible with the nation's democratic values.

This opposition led six states (including Washington and Mississippi) to pass anti-tipping laws between 1909 and 1915.

However, these laws were largely ineffective and were repealed by the 1920s, with tipping becoming ingrained into American price models.

The Fair Labor Standards Act and Tipped Minimum Wage

The Fair Labor Standards Act (FLSA), passed in 1938, did not initially address tipped workers adequately.

Subsequent legal decisions allowed employers to count tips toward wages, leading to situations where workers received nothing if their tips met the minimum wage.

A 1966 amendment to the FLSA required employers to pay a base wage to tipped workers, but the tipped minimum wage was set low and has been frozen at $2.13 per hour since 1991.

This creates a system where employers rely on customers' tips to cover a significant portion of a worker's wages, effectively making tips a supplement to, and often a replacement for, a full wage.

There has been a lot of pushback regarding tipping in our culture recently. Because, to be honest, it has gotten out of hand. But until we look at the reason and cause, it will not be eliminated.

Two things need to be addressed.

1. Employers need to be willing to pay a living wage to their employees. To do this, many establishments will need to raise their prices to reflect this, which comes to the second part.
2. Consumers need to let go of the arrogance of thinking that they "deserve" underpriced products.
3. We need to readjust our thinking to accept that we need pay fair market value with the understanding that employers are paying a fair living wage. And we need to get rid of the arrogance in thinking that service people are "beneath" us and they just need to get a better job. The arrogance and disdain toward service workers has deep roots in racism and sexism. We must do much better.

Until then, do the right thing and tip appropriately, graciously and gratefully.