When she visited the United States for the first time in eight years in 2025, Jordan Kastelic was shocked by the evolving tipping culture. “In most countries, tipping is a way to say ‘thank you’. It’s optional, limited, and linked to the quality of service,” explains the twenty-eight-year-old game designer from London. “In the United States, it felt obligatory, like a hidden tax.” At one point, she was asked to tip for a pre-packaged muffin in a self-service café. “There was no service, no interaction, just a screen asking me to add a tip.”
Tipping has been ingrained in American culture for over a century, and has always been somewhat controversial. Historically, it was a symbolic gesture from the wealthy to show appreciation for good service. While it had the advantage of supplementing employee income, that was never the original intention.
When the Fair Labor Standards Act of 1938 went into effect, employers were allowed to pay their staff below minimum wage, under the condition that tips would make up the difference. In some states, workers in hospitality and restaurant sectors can be paid as little as $2.13 per hour, with the expectation that tips will bring them to the federal minimum wage of $7.25 per hour. In theory, tipping remains optional, but in practice, it has become necessary, and some customers feel that the situation has reached a breaking point.
Recently, the American tipping culture has shifted into high gear, a phenomenon some refer to as “tipflation.” During the Covid-19 pandemic, as many establishments closed, customers were encouraged to be more generous. While 15-20% tips were the norm before, 30% tips have become common in some places. After the pandemic, expectations remained high due to the significant increase in the cost of living.
The widespread use of digital payment terminals has exacerbated the issue. These systems prompt customers to select a tip percentage before they can pay, and even though it is possible to decline or adjust the amount with a click, it is done under the server’s gaze, which can make the exchange awkward. The practice has also expanded to sectors where service is minimal or seemingly non-existent. Now, you may be asked to leave a tip for takeout coffee, and even a self-service machine can suggest a gratuity.
