Although the U.S. is one of the most advanced first-world countries, its tipping culture is still extremely outdated. America’s growth in economic size, technological innovation and social standards are restrained by its current tipping culture, which creates financial instability for service workers, unreasonable standards for consumers and only benefits companies.
For the vast majority of countries, tipping is simply seen as a gesture of gratitude. Even while dining in, restaurant-goers are not obligated to tip, and usually only do so if the service exceeds their expectations. In fact, leaving a gratuity is frowned upon in many East Asian countries, such as China or Japan, because employees believe that good service should be the standard. Instead, many restaurants in those countries include an automatic service charge of five to 10 percent to the bill, eliminating the obligation for customers to tip and providing workers with wage security.
In the United States, however, it is customary for customers to tip a minimum of 15-20% of the total, even in establishments beyond restaurants, like salons or valets. In fact, according to a Forbes Digital Tipping Culture survey, most Americans tip between 16-20%, with the 21-25% category trailing close behind. A tip in America is not seen as a bonus reward, but more so a necessary act to support minimum wage workers.
This stems from the fact that the federal minimum wage in the United States is $7.25, but the federal minimum wage for employees who receive tips is only $2.13, far below the standard minimum wage.
While employers are required to compensate employees if they do not receive enough tips to cover minimum wage, many consumers are unaware of this fact and tip to help the workers. As a result, service workers must rely on the generosity of customers to close the gap between an inadequate minimum wage and a livable income.
The only party that reaps the benefits of the American tipping system is the business owners themselves. Since customers are expected to tip generously, restaurant owners don’t feel the need to pay their employees as much because their pay combined with their tips will likely pass the minimum wage threshold, allowing restaurant owners to pocket more money for themselves.
The burden of fair compensation should not fall on the shoulders of customers, but on the shoulders of employers, who must ensure that their employees receive adequate wages that support them without any extra tips. A shift towards a fairer wage system, where employees are paid regularly and tips are discouraged, will contribute to a more stable distribution of earnings for service workers. It will also promote a healthier and more sustainable work environment for them, and alleviate the financial strain on customers too.
