For millions of customers across the United States, leaving a tip is an intuitive practice. Today, virtually all restaurants and bars feature looming, neon screens prompting consumers to select a percentage. And yet, despite its prevalence, tipping culture has been facing rising levels of public backlash.
The COVID-19 pandemic left many businesses struggling and service workers unable to make ends meet. Americans tipped generously in an effort to support frontline employees, but the impacts of the pandemic lingered — including the ones on gratuity culture. A Pew Research survey of almost 12,000 U.S. adults found that 72% felt that tipping was expected more compared to five years prior. When coupled with research from Square, which found that roughly 75% of remote food and beverage transactions now request tips, this data demonstrates a steady rise in the portion of customer spending coming from tips. Mounting gratuity expectations have increased feelings of reluctance over what began as an act of solidarity. Moreover, as tipping dynamics have changed, studies further examining gratuity culture have exposed unseen, dangerous ramifications.
$7.25 per hour is the national minimum wage. For tipped employees living in certain states, that number drops to $2.13.
Employers are expected to provide compensation for workers if tips fall short. In practice, however, this supposed security net fails. According to an analysis of over 9,000 restaurants by the U.S. Department of Labor, a staggering 84% disregarded this employer compensation policy. A total of $5.5 million was unlawfully kept from employees.
While businesses profit from this lowered labor cost, tipping wage discrepancies perpetuate income inequality in the service industry. This practice shifts the burden of proper compensation off of businesses and onto consumers. It also leaves room for disparities among workers, as not all have the opportunity to earn money from tips.
Mandatory gratuity charges are often used as a means of ensuring proper compensation, but this practice only adds to tension surrounding tipping culture. When customers feel forced to pay gratuity, they become increasingly reluctant to tip workers as a whole. When all is said and done, service workers are the ones left paying the price.
In addition to its economic drawbacks, gratuity culture also exacerbates workplace discrimination and sexual harassment. A study by Restaurant Opportunities Centers United found that women working in restaurants with tipping wages were twice as likely to face sexual harassment when compared to women working in restaurants with one universal minimum wage. Women in the service industry often feel compelled to act or dress in certain ways given that their income heavily depends upon tips. Even social media displays a rising trend of servers experimenting with their physical appearance to maximize received tips. Workers are placed in a subservient position while customers maintain authority over the interaction. Tipping as a practice places consumers on a power pedestal, creating an imbalance in the relationship between servers and customers.
Discriminatory behavior in gratuity culture does not end there. An evaluation of over 1,000 tips to taxi drivers revealed that Black drivers were tipped approximately a third less than their white counterparts. Another study by One Fair Wage found that Black service workers received, on average, fewer tips than white servers. Racial bias is prevalent in gratuity practices and puts people of color at a disadvantage, leaving their welfare in the hands of prejudiced consumers.
A common argument in favor of gratuity culture is that tipping represents gratefulness for people in customer service. While this claim certainly contains elements of truth, it disguises the double-edged sword of expressing gratitude. By withholding tips, angry customers have a means of weaponizing their anger and lashing out at servers. Furthermore, the rise in tipping pressure has shifted intentions from gratitude to obligation. Acts of kindness are left tainted by societal expectation and resentment. When these effects are combined with the discriminatory behavior and financial uncertainties that tipping introduces, it is clear gratuity culture does more harm than good.
Tipping, while commonplace, clouds the service industry with detrimental consequences. Millions live precariously, grappling with wrongful treatment and a speculative income. By collectively exposing these pitfalls and questioning what it truly means to leave a tip, individuals can advocate for service workers across the nation. Though there is no overnight solution to such a deeply ingrained societal practice, acknowledging tipping culture’s failures is the first step towards a more righteous future.
