While U.S. travelers who go abroad might worry about tipping too much, travelers to America might be shocked that 20% is commonly considered to be the average tip. Why is it so different here? The primary reason is that U.S. servers and waitstaff usually make more than half of their income through tips, according to the National Employment Law Project. Employers of tipped employees who receive $30 or more in tips per month are only required to pay their workers $2.13 an hour, if that employee’s tips bring their hourly wage up to the federal minimum wage which is just $7.25 an hour, depending on location. That means that the majority of restaurant servers are making just a few bucks an hour from their employer, and the rest of their wages come from tips.
It might seem strange to have the customers footing the bill for restaurant employees’ wages, but tipping has been part of U.S. culture since the 1800s, and really took hold as a business strategy after the Civil War. This ingrained system means it’s common to tip 15–20% even if the meal is lousy, especially if it’s for reasons beyond your server’s control like long wait times for food, or the kitchen sending out the wrong order. Ultimately, diners know servers rely heavily on tips for their livelihood and don’t want them to take home lower wages even if service is poor.