Tipping is deeply ingrained in the service and hospitality industry across America and many other countries. However, with almost everybody feeling the pinch of our current cost of living crisis, tipping rates have dropped in recent years. Wrongly or rightly, it’s important to understand where the idea of tipping comes from in the first place when deciding whether or not to tip in America.
Here, we explore how tipping has become the norm in the USA through a combination of historical, cultural, and economic factors.
The beginning of tipping in America
Tipping in America has its roots in European customs. In the Middle Ages, masters or nobles would tip their serfs as a reward for exceeding expectations. Tipping was also common in taverns to ensure good, quick service. When wealthy Americans traveled through Europe in the 1850s, they encountered tipping and brought the practice back to the U.S..
Shortly after the Civil War, the 13th Amendment was passed in 1865, abolishing slavery. Many people began to work in low-paying positions, and so they began to rely on receiving tips to supplement their wages.
Industrialization
In the years that followed, attitudes towards tipping were mixed. Some thought it unnecessary and others desperately needed their tips to make ends meet. But as America continued its industrial revolution and became more urbanized, jobs in restaurants, hotels and transportation services boomed and tipping became commonplace.
Though Congress attempted to ban the practice of tipping initially, by 1926 it was forced to rescind the law as tipping had become so widespread that it was impossible to police. In 1938, the minimum wage was introduced for the first time, however, tipped workers in the service and hospitality industries were omitted – so they continued to rely heavily on their tips. In 1996, the subminimum wage for tipped workers was frozen at $2.13 per hour – a rate that still exists today in many states across the country.
Cultural acceptance and social expectations
Over time, tipping has become a social norm and an expectation of those in certain positions in society. Media, etiquette guides and social pressures have concreted tipping as an integral part of life in the U.S., with most restaurants now incorporating a service fee rule as standard and even adding it to the bill in many places.
Employers still favor tipping because it shifts some of the wage burden to customers, a practice that has been economically advantageous for businesses competing to survive in a crowded economy. For many workers, tipping still makes up a large proportion of their wages in America. However, attitudes toward tipping are shifting as people are putting the responsibility back on employers, with 36% of Americans feeling they’re asked for a tip too often and 41% thinking employers should do more to ensure their employees are paid a sufficient amount without tipping.
Will tipping continue?
With the rise of digitized services and increasing pressure on employers to pay their employees fairly, the future of tipping seems uncertain. Whilst it has served an important role in society for those unable to survive off poor wages, the public has mixed feelings about tipping in the 21st century. For now, it’s best to tip where appropriate and in response to great service, whilst avoiding tipping for the sake of it where it’s not required and you haven’t experienced any human or personal services.
We hope you found this blog post on How Did Tipping Become The Norm Across America?, useful. Be sure to check out our post on Business Strategies and The Business Days Management for more great tips!
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