Posted on February 12, 2021

Tipping Is a Legacy of Slavery

Michelle Alexander, New York Times, February 5, 2021

Once upon a time, I thought that it was perfectly appropriate for restaurant workers to earn less than minimum wage. Tipping, in my view, was a means for customers to show gratitude and to reward a job well done. If I wanted to earn more as a restaurant worker, then I needed to hustle more, put more effort into my demeanor, and be a bit more charming.

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{snip} I had no idea that tipping was a legacy of slavery or that racism and sexism had operated to keep women, especially Black women like me, shut out of federal protections for wage labor. I did not question tipping as a practice, though looking back I see that I should have.

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After I graduated from law school, I became a civil rights lawyer and began representing victims of race and gender discrimination in employment, as well as victims of racial profiling and police violence. But it wasn’t until I read Saru Jayaraman’s book, “Forked: A New Standard for American Dining,” that I learned the history of tipping in the United States. After the Civil War, white business owners, still eager to find ways to steal Black labor, created the idea that tips would replace wages. Tipping had originated in Europe as “noblesse oblige,” a practice among aristocrats to show favor to servants. But when the idea came to the United States, restaurant corporations mutated the idea of tips from being bonuses provided by aristocrats to their inferiors to becoming the only source of income for Black workers they did not want to pay. The Pullman Company tried to get away with it too, but the Black porters, under the leadership of A. Philip Randolph, formed the nation’s first Black union to be affiliated with the American Federation of Labor and fought and won higher wages with tips on top.

Restaurant workers, however — who were mostly women — were not so fortunate. The unjust concept of tips as wages remained in place for them. And in 1938, when Franklin Roosevelt signed the nation’s first minimum wage into law, it excluded restaurant workers, a category that included a disproportionate number of Black people.

In 1966, when our nation’s minimum wage was overhauled, restaurant workers were even more formally cut out with the creation of a subminimum wage for tipped workers. Today, 43 states and the federal government still persist with this legacy of slavery, allowing a tipped work force that is close to 70 percent female and disproportionately Black and brown women to be paid a subminimum wage. {snip}

In the mid-1960s, the guaranteed wage for tipped workers was $0 an hour. Today, the federal minimum wage for tipped workers is just $2.13 an hour — a just over $2 increase — and a mostly female, disproportionately women of color work force of tipped workers still faces the highest levels of harassment of any industry. Women restaurant workers in states with subminimum wage report twice the rate of sexual harassment as women working in restaurants in the seven states that have enacted One Fair Wage — a full minimum wage with tips on top. The women in these seven states — California, Oregon, Washington, Nevada, Montana, Minnesota and Alaska — can rely on a wage from their employer and are not as dependent on tips and thus feel empowered to reject the harassment from customers.

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For Black women, the situation is especially dire. Before the pandemic, Black women who are tipped restaurant workers earned on average nearly $5 an hour less than their white male counterparts nationwide — largely because they are segregated into more casual restaurants in which they earn far less in tips than white men who more often work in fine dining, but also because of customer bias in tipping.

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Technically, federal law requires that employers must cover the difference when the hourly wage, subsidized by tips, does not amount to $7.25 an hour. But in practice, that mandate is frequently ignored. {snip}

Fortunately, the subminimum wage for tipped workers might finally come to an end if Congress enacts the minimum wage policy in President Biden’s new $1.9 trillion relief package in its entirety. The Raise the Wage Act, if passed, would not only raise the minimum wage to $15 minimum wage but also fully phase out the subminimum wage for tipped workers. {snip}

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As the Raise the Wage Act moves through Congress this month, the choice is clear: our representatives can choose to roll over to the trade lobby yet again and perpetuate a legacy of slavery, or they can choose to listen to the millions of workers — disproportionately women and people of color who increasingly represent this nation’s future voters — and make history during Black History Month by ending the subminimum wage for tipped workers once and for all.