The History and Controversy of Tipping: From Europe to the US and the Fight for Fair Wages

TLDR Tipping originated in Europe during the Middle Ages and became prevalent in the US after the Civil War, but it was seen as exploitative and led to debates and failed attempts to ban it. The reliance on tips as a form of payment continues today, with the fight for a higher minimum wage ongoing.

Timestamped Summary

00:00 The hosts discuss the arbitrary nature of tipping and question why the burden of paying a living wage falls on customers rather than employers.
03:54 Tipping originated in Europe during the Middle Ages as a way to recognize a job well done, and it was practiced mostly in private homes and eateries in London.
09:25 Tipping originated in Europe and was mainly practiced in rich private homes, but it was seen as a feudal and un-American custom when it was brought to the US in the 1700s and 1800s.
13:56 After the Civil War, tipping became more prevalent in the US as restaurant owners and businesses took advantage of the newly freed and unemployed individuals by using tipping as a way to avoid paying fair wages.
19:17 Tipping became more widespread and controversial after Pullman hired black men as porters on his train cars and paid them low wages supplemented by tips, leading to debates and criticism from both the wealthy and the labor force.
24:08 Attempts were made to crack down on tipping, with anti-tipping societies forming and laws being passed in several states to make tipping illegal, but these efforts were largely unsuccessful and impossible to enforce.
29:11 In 1916, William Rufus Scott wrote "The Itching Palm," a scathing manifesto against tipping, calling it un-American, a moral malady, and a new form of slavery.
34:13 The anti-tipping movement aimed to alleviate the exploitation of workers, but ultimately failed to end tipping due to the influence of the National Restaurant Association and the financial impact of prohibition, leading to the repeal of anti-tipping laws and the need for tips to make up for lost revenue.
39:34 The restaurant industry was excluded from the minimum wage in 1938, solidifying the reliance on tips as a form of payment, while Europe moved away from tipping and adopted a service charge system; in 1966, the sub-minimum wage tip credit was introduced, allowing employers to pay workers below the minimum wage with the expectation that tips would make up the difference, and this sub-minimum wage has remained frozen at $2.13 since 1996.
44:47 The fight for a $15 minimum wage is opposed by the National Restaurant Association, and the recent ruling that it cannot be included in the coronavirus relief package means that many restaurant workers will continue to earn the sub-minimum wage of $2.13 an hour.

The History and Controversy of Tipping: From Europe to the US and the Fight for Fair Wages

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