“Tipping has gotten out of control.” At least, that’s what you will hear most Americans say. The fact is, tipping culture has always been a problem. From the subjective “rules” of tipping to the underlying economic exploitation, we are in desperate need of a solution.
Likely, everyone in the United States is familiar with tipping for certain services. It is widely accepted that you will tip your waiter, hairdresser, and nail tech for the services they provide. However, you might be surprised when you go to the nearest Crumbl cookie and have them flash their iPad screen, asking for a $5 tip with your order.
In fact, it seems as though everybody is asking for a tip now. Even concert vendors are asking for tips after they spend 20 seconds grabbing you a bucket hat and a t-shirt. If you’re like me, you of course oblige and give them a $20 tip on top of your already $100 purchase. You then walk away thinking, “Damn, did I really just pay them to do their job?”
The tipping rulebook
With so many businesses asking for tips now, the “rules” of tipping have become ambiguous. Everybody has their own tipping standard, but this is my current ruling:
- Servers/Bartenders: 25% of the bill, no debate about it. If you don’t have the money, go to McDonald’s.
- Delivery Drivers: At least 25%. They are essentially servers that have to travel to make things more convenient for you. If you don’t tip them, you’re just a jerk.
- Specialty Services: For hairdressers, mechanics, and nail techs, this can be a little more personality-based. If they are nice, 20% is a good rule of thumb.
- Fast Food Services: Maybe a couple of dollars if you have it. They aren’t providing direct service for you specifically.
- Retail Services: No tip; it is literally just their job. Unless you are a pushover like me, you will tip 20%.
Don’t like these rules? Me either. They are a completely arbitrary set of standards that change depending on my mood and how much cash I have in my pocket. However, in the shoes of the worker, this must be difficult. Imagine making a living based on a person’s feelings that day. Some people might just say that’s the way it is, but WHY is it that way?
Stop pressuring me!
The problems with tipping have only been exacerbated by the affordability crisis in America. With families having to budget every dime, tipping can seem like an unnecessary expense that they simply cannot afford. On the other hand, tipping is completely necessary for the worker; it is what determines how much money they can budget in the first place.
This pressure on tipping has led to many Americans resenting tipping culture. In fact, nearly 90% of Americans believe that tipping culture is out of hand. However, it isn’t the fault of the worker just asking for a little extra money to pay their rent; it is the fault of the American economy.
You’re being exploited
Tipping culture is an inherently exploitative system. The concept of tipping is designed to allow employers to get away with paying their employees a livable wage, shifting the expense over to you as the consumer. After all, if they can get away with paying their workers less, then that’s just more money they can pocket. This is great for the company executives, but not so great for everyday citizens.
When you look at the history of tipped workers, this exploitation becomes even more apparent. Lawmakers across the nation have used the concept of tipping to create a “subminimum wage”. This is well under the minimum wage, but it is legal because of the expected addition of tips to a worker’s salary.
This American concept of a subminimum wage was originally created to avoid paying black workers an acceptable wage. After the abolition of slavery, many black men and women were relegated to jobs of service. Rather than pay them fairly for their duties, employers would suggest that the customers should pay extra if their service was good. Is this really a system that we want to uphold in 2025?
Today, we still see these practices used. In the restaurant industry, servers are still paid below minimum wage and make their living based on the donations of customers. This has become a problem outside of standard service industries as well. Companies like Crumbl will falsely advertise their starting salaries with the “potential for tips” added to the number seen in the job posting.
Let’s get to the root of it
The root of the tipping problem comes from a capitalist mindset. In basic terms, capitalism relies on the demand of consumers to be successful. However, it also operates as a top-down system, where the people at the top of the ladder get their cut first. If company CEOs are unable to meet the demand to give them the earnings they desire, they refuse to take a pay cut. Instead, they will cut your pay to add it to their own wallets.
Unregulated capitalism is absolutely spectacular if you are a company head with no empathy. However, for the nearly 150 million Americans who are not self-employed, this system is actively pushing them down. The issue is, the system doesn’t see you being exploited as a problem– it’s a feature.
The solution to tipping culture
If you are a consumer who wants to stop spending your hard-earned money on other people’s employees, or if you are a worker who doesn’t want to depend on customer donations to pay your bills, you must support regulatory actions.
The only way to fix this deep-rooted issue is to change local and federal laws to hold employers accountable. Changing this system will take a while, so in the meantime, try your best to help your fellow tipped workers as best as you can. Here’s a tip: If you want to have more money in your pocket, go out and vote for it.
