One of the most confusing experiences for Koreans traveling to the United States is tipping. The amount, timing, and reason for giving tips are not clear, making it a significant cultural shock for first-time visitors. On the other hand, for Americans, tipping is a routine part of dining and payment. This difference stems not just from basic cultural differences but from the history, economic structure, and labor market system of the United States.
The practice of adding a tip after a meal is a common aspect of American dining culture. Tipping culture originated from the habits of medieval European nobility. Gratuities given by nobles to their servants settled as ‘tokens of appreciation,’ which spread to the United States in the late 19th century as it was emulated by the American upper class. However, the initial reaction within America was negative. Laws were passed in several states to prohibit tipping, criticized as ‘remnants of the class system.’ But after the mid-1920s, these prohibitions disappeared, and tipping culture spread throughout the labor market.
The expansion of the tipping system within the labor market particularly focused on Black workers. After the abolition of slavery, employers made Black workers rely on tips instead of receiving regular wages. This was the moment when tips shifted from a symbol of appreciation to a means of living.
As of 2025, tips have become ‘effective wages’ for service industry workers in America. Many workers receive less than the minimum wage, so without tips, survival itself is impossible. According to the U.S. Department of Labor, the minimum base pay without tips is only $2.13 per hour. This gap must be filled by tips.
In 2025, it is common to tip 15-20% at restaurants, and if the service is satisfactory, it can go up to 25%. Millennials and Generation Z are paying an average of over 19%, and some establishments even recommend tips up to 30% through digital payment systems. This has led to criticism within the U.S., known as ‘tipflation,’ where the system, rather than the customer, determines the tip amount.
Within the U.S., criticism and alternatives to tipping culture are being actively explored. Some high-end restaurants have adopted the European-style ‘service fee included’ pricing to abolish tipping. States like New York and Florida are discussing systems that ensure minimum wages without relying on tips.
Technically, proposals include introducing a ‘tip disable’ option on payment screens or clearly displaying tipping guidance information like digital watermarking. Providing accurate tips practices by region through travel guides and tourist apps is also a realistic alternative.
Most importantly, it is crucial to clearly distinguish whether tips are a reward for service or a means of wage supplementation. The confusion surrounding tips ultimately requires simultaneous efforts in policy, culture, and user education to be resolved.