Vice Chair of the Board of Regents, Jack L. Fortner | The University of New Mexico
Vice Chair of the Board of Regents, Jack L. Fortner | The University of New Mexico
Tipping has become an almost ubiquitous part of the consumer experience in the United States, with requests for gratuities extending beyond traditional service settings like restaurants and salons. This expansion, referred to as the 'Tip Creep Phenomenon' by University of New Mexico Sociology Professor Eli Wilson, highlights a growing trend where tipping is expected in various retail environments.
Professor Wilson notes that while tipping has been part of American culture since the 19th century, its prevalence and percentage have increased significantly over time. "In restaurants, if you look back at the early 1900s it was pretty common to see tips around 10 to 12 percent," he said. By the late 2000s, tips had risen to between 18 to 20 percent or more.
Wilson suggests that technology plays a significant role in this trend by prompting consumers to tip through digital interfaces. He also points out that both management and workers benefit from increased tipping: "It benefits management (owners) and benefits workers."
While some attempts have been made to eliminate tipping, such as Shake Shack founder Danny Meyer's initiative nearly a decade ago, these efforts have often reverted due to various challenges. Tipping's complex history traces back centuries with no clear origin point in Europe. In America, organized groups once viewed it as 'undemocratic.'
The issue gained attention during the 2024 presidential election when President-Elect Donald Trump and Vice President Kamala Harris proposed cutting federal taxes on workers' tips. While this could increase take-home pay for tipped employees, Wilson argues it shifts responsibility away from employers: "I worry this is a way to offload costs from restaurant owners instead of demanding that they pay fair and livable wages."
Prominent advocacy groups propose raising the federal tip minimum wage as an alternative solution. Wilson emphasizes that many restaurant workers come from marginalized backgrounds, a topic he explores in his book "Front of the House, Back of the House: Race and Inequality in the Lives of Restaurant Workers." He underscores the importance of addressing these issues for those who rely on tips.