11 Things You Never Knew About Tipping

Love it or hate it, tipping is here for now. The practice of tipping has become so embedded in American culture that refusing to do so might result in some serious side-eye. But tipping is more than just a form of social etiquette.

In fact, it’s evolved into a necessary system that allows service industry workers to make a decent wage. According to the Bureau of Labor Statistics, employers are only required to pay tipped employees a minimum of $2.13 an hour, if the worker’s tips can add up to the federal minimum wage — $7.25 — or more. But this varies state by state. For example, in California, tipped employees are guaranteed the state’s minimum wage on top of their tips. Tipping can majorly impact the salaries of service workers, but there are more interesting and weird facts about tipping that you might not know.

Tipping Began in Europe

Although America is notorious for tipping, the practice first started as a European custom. According to TripSavvy, super wealthy British folk would give their lowly servants a few extra coins as a way to acknowledge their labor. The tradition soon caught on in the U.S. thanks to Americans visiting Europe after the Civil War. 

But people initially criticized tipping because it was rooted in aristocracy, and so appeared to be in conflict with America’s democratic value system. As a result, some states even passed laws to abolish tipping entirely. It wasn’t until the early 1900s that people’s sentiment toward the practice began to change.

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Not All Countries Tip

Some countries, such as Japan and Switzerland, don’t have a tipping culture. For example, it is not proper Japanese custom to tip. Japanese servers are often known for providing high-quality service to all their customers without the incentive of a tip or a service charge. The same can be said about Switzerland. However, there is a service charge that is usually included in your bill so you don’t have to worry about tacking on extra money, according to Smarter Travel. 

Republicans Tip More Than Democrats

A 2017 survey conducted by Princeton Survey Research Results for CreditCards.com found that Republicans tip workers most frequently and at the highest rate compared to Independents and Democrats. In fact, 59 percent of the Republicans surveyed said they regularly tip more than 15 percent, followed by 56 percent of Independents and 46 percent of Democrats. 

Women Tip Higher Than Men

When it comes to tipping, women are more generous than men. Women leave a median tip of 20 percent compared to men who leave a median tip of 16 percent, according to a 2018 survey conducted by GfK Custom Research North America for CreditCards.com. 

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Millennials Are the Worst Tippers

Although many millennials think that 15 to 20 percent is a good tip, they are the group most likely to stiff their server. In a 2018 survey conducted by Civic Science, 59 percent of millennials said they leave a 3 percent tip or nothing. Along with that, only 29 percent of millennials leave a 15 to 20 percent tip and 20 percent of millennials leave less than a 15 percent tip. 

Part of the reason millennials don’t like to tip is that they don’t believe in tipping culture. For example, 34 percent of millennials believe that tipping should become obsolete, the highest percentage among baby boomers and Gen Xers, according to the survey.

Baby Boomers Tip the Most

Unlike many millennials who might avoid leaving a tip, baby boomers believe in tipping culture. In fact, they are the largest and most reliable group when it comes to leaving a tip at restaurants. Nearly 55 percent of seniors 65 and older said they tip 20 percent or more at a restaurant, according to the 2018 survey from CreditCards.com.

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Race Can Affect Tipping

Based on research cited in a study by Cornell University, white people tend to tip on the high side compared to other races. Asians tipped lower than white people by 1.63 percentage points, blacks tipped lower than whites by 2 percentage points and Hispanics tipped lower than whites by 0.43 percentage points. But experts believe these differences could be due to fundamental cultural differences of what is appropriate. At the same time, black servers have faced discrimination in the service industry and have received lower tips based on racial bias. 

People With Higher Incomes Tip Less

Even rich people don’t like to tip. In the 2018 survey by Civic Science, 60 percent of people with an annual household income before taxes of $100,000 or more leave a 2 percent tip. By contrast, 32 percent of people with an annual income of $50,000 or less leave a 2 percent tip. 

People in the Northeast Tip the Best

If you’re a server in the Northeast, you’re in luck. The Northeastern states are very generous when it comes to tipping their servers, leaving an average of a 17 percent tip, according to the 2017 survey from Discover. In addition, Southern states Tennessee, Kentucky, Mississippi, and Alabama also leave a median tip of 17 percent. 

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The West Coast and the South Tip the Worst

According to the 2018 survey from CreditCards.com, people in the West and South generally tip less, with people in the South most likely to not leave a tip at all. 

Servers and Hairstylists Earn the Highest Tips

A 2017 Discover survey found that servers and hairstylists make the most in tips. Servers earned an average of 16 percent in tips, followed by hairstylists who earned an average of 13 percent in tips. By contrast, takeout cashiers and casino dealers earned the least amount in tips at 4 and 6 percent, respectively. 

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