You might not think of tipping as a legacy of slavery, but it has a far more racialized history than most Americans realize. Tipping originated in feudal Europe and was imported back to the United States by American travelers eager to seem sophisticated. The practice spread throughout the country after the Civil War as U.S. employers, largely in the hospitality sector, looked for ways to avoid paying formerly enslaved workers.
One of the most notorious examples comes from the Pullman Company, which hired newly freed African American men as porters. Rather than paying them a real wage, Pullman provided the black porters with just a meager pittance, forcing them to rely on tips from their white clientele for most of their pay.
Tipping further entrenched a unique and often racialized class structure in service jobs, in which workers must please both customer and employer to earn anything at all. A journalist quoted in Kerry Segrave’s 2009 book, Tipping: An American Social History of Gratuities, wrote in 1902 that he was embarrassed to offer a tip to a white man. “Negroes take tips, of course; one expects that of them—it is a token of their inferiority,” he wrote. “Tips go with servility, and no man who is a voter in this country is in the least justified in being in service.”
The immorality of paying an insufficient wage to workers, who then were forced to rely on tips, was acknowledged at the time. In his popular 1916 anti-tipping study, The Itching Palm, writer William Scott described tipping as an aristocratic custom that went against American ideals. “The relation of a man giving a tip and a man accepting it is as undemocratic as the relation of master and slave,” Scott wrote. “A citizen in a republic ought to stand shoulder to shoulder with every other citizen, with no thought of cringing, without an assumption of superiority or an acknowledgment of inferiority.”
Several states sought to end the practice in the early 1900s, often in recognition of its racist roots. But the restaurant industry fought back and was powerful enough to roll back local bans on tipping. And tipped workers—along with most others, as the act applied to industries that together made up only one-fifth of the labor force—were excluded from the first, limited federal minimum wage law passed in 1938.
It took until 1966 for advocates to win a base wage for tipped workers, and that amounted to only 50 percent of the minimum wage already guaranteed to other workers.