Tips: America’s $2.13 Wage Disguised as Generosity
Photo by Ryan Quintal on Unsplash
In the US, tipping isn’t just 'thank you for good service'—it's a sneaky wage trick rooted in racism, born post-Civil War when former enslavers refused to pay Black workers. The federal tipped minimum wage is a baffling $2.13 an hour, forcing staff to beg customers for the rest. As analyst Nina Mast puts it, tips are really meant 'to make up the difference between the minimum wage and the tipped minimum wage.' And thanks to lobbying from the National Restaurant Assoc., this tip credit scam hasn’t budged since 1991.
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Source: Vox | Published: 7/27/2025 | Author: Jonquilyn Hill
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