After emancipation, many slaves went from working for free to working for tips.

19th-century Americans discovered tipping in Europe

Tipping waiters was a custom in medieval Europe, where masters gave their serfs money for exceptional work. Wealthy Americans vacationing in Europe in the mid-1800s discovered the behavior and brought it back to the US.

George Pullman popularized tipping in the US with his Pullman sleeping car business

By 1868, Pullman, who operated luxury sleeping cars on the country’s growing network of railways, had started hiring formerly enslaved Black men as porters for extremely meager wages, working long hours in poor conditions. He encouraged wealthy passengers to tip them, helping institutionalize tipping in the US.

The Fair Labor Standards Act established a minimum wage—but it didn't cover everyone

A 1966 amendment created the “tip credit,” which allowed restaurants to pay below minimum wage if tips compensated the difference. However, this federal tipped minimum wage has remained frozen at $2.13 per hour since 1991, whereas the regular minimum wage has increased multiple times since then.

US tipped employees receive the 'subminimum wage' of $2.13, unchanged since 1991

Tipped employees (anyone who makes $30+ per month in tips) are not federally entitled to a traditional minimum wage. Customers determine their earnings. The National Restaurant Association believes that if restaurant owners are forced to pay above the subminimum wage for tipped workers, restaurants could be forced to close.

Tipped workers in ‘$2.13 states’ experience an estimated 18.5% poverty rates

In so-called “equal treatment states,” where tipped workers are subject to the normal federal minimum wage or higher rather than the tipped minimum wage, the poverty rate is 11.1%.

In the 1920s, Prohibition helped cement tipping norms in the US

During Prohibition, restaurants lost significant revenue, given that they could no longer legally serve customers high-margin alcohol. As a result, many of these restaurants leaned more heavily on tips to ease the financial pressure of paying employees.

Advocate estimate roughly 27% of Black service workers live below the poverty line

That’s significantly higher than the rate for restaurant workers overall. Approximately 37% of tipped workers are mothers, nearly half being single moms struggling with income volatility. This article includes more statistics about what the average tipped worker looks like and offers a peek inside their lives.

72% of Americans say tipping is now expected in more places than it was 5 years ago

This change has been driven by multiple factors, including point-of-sale systems from fintech companies such as Square that prompt customers for tips directly. Americans also increased tipping during the pandemic in an effort to support local businesses struggling financially due to a lack of physical foot traffic.

Americans spend an average of nearly $500 per year on tipping at restaurants and bars

The habit runs contrary to economic rationality: Why pay more for a good or service you have already received when it isn’t mandatory? Researchers found that people tip, in part, to avoid the psychological pain of not fitting in.

Many states require higher direct wage amounts for tipped employees than the federal requirement

Employers of "tipped employees" are required to pay them $2.13 per hour in direct wages if that amount, combined with the tips, at least equals the federal minimum wage of $7.25. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer has to make up the difference. However, this differs from state to state. This interactive map shows what tipped workers make per hour in every state.

The first federal minimum wage wasn't set until 1938, when it was 25 cents per hour.

Nearly 9 in 10 Americans were annoyed by tipping as of 2025

That’s a sharp increase from the 75% who thought tipping culture had gone too far in 2024. One potential culprit? The proliferation of tipping screens in places outside sit-down restaurants, such as coffee shops and hair salon. Three in 10 Americans say they give less when presented with tipping screens.

Women tend to tip more often than men

For instance, among people who visit hair salons or barber shops, 62% of female respondents said they always tipped. Only 45% of men said the same. This article includes more takeaways and stats about how Americans tip, and who receives them.

What was life like as a slave in the US?

Over 2,500 former slaves were interviewed by writers and journalists in the late 1930s as part of the US Federal Writer's Project. The collection recorded images and firsthand verbal accounts of life as a slave, eight of which are highlighted in this article at the Library of Congress. See the humanity in each of these individuals with their firsthand accounts.

Over a century ago, fewer than 1% of Americans paid income taxes—but the cost of World War II prompted the federal government to greatly expand the number of people required to pay income taxes.

Visualize tipping norms around the world with this map that reveals the US tips more service providers and leaves larger amounts than anywhere else globally.

The US had roughly 1.6 million minimum wage workers as of 2021

Typically, minimum wage workers are young. They’re not only more likely to be a woman than a man, but also more likely to be single than married.

The way the minimum wage is set in other countries often differs from US methods

Unlike the US, some countries set the minimum wage by industry through collective bargaining agreements. In Luxembourg, the minimum wage translates to roughly $19.50 per hour, currently making it the country with the highest minimum wage in the world.

Fintech companies made it easier for merchants to request tips, leading to fatigue

In recent years, companies such as Square and Toast have created touch screen technologies prompting customers at coffee shops and casual restaurants to tip upwards of 25%. Despite the interesting psychological conundrum this presents to consumers, one tech columnist argues that shoppers don't need to succumb to the pressure.

Since its inception in 1938, Congress has raised the federal minimum wage 22 times

If you want all the details about when and why these rate increases happened check out this resource from the US Department of Labor.

Despite being completely legal to discuss salaries with your coworkers, the practice largely remains taboo in the US, particularly amongst older workers.

Pay transparency—once considered taboo—is gaining momentum. Despite being legally protected since 1935, open salary discussions have only recently become more common, especially among younger workers. This overview explores how cultural norms, economic shifts, and new state laws are reshaping the conversation around what we earn.

Before Social Security, elderly Americans relied on family support, limited state pensions, or company-sponsored pensions

Before Social Security benefits were available to American retirees, they had to find other ways to get by. Pensions were only available to roughly 15% of workers, and most elderly Americans went without meaningful economic security.

The South built its wealth largely from slave labor

Before the Civil War, the Southern economy relied on roughly 4 million enslaved people producing cash crops such as cotton, rice, and sugarcane. Their forced labor generated immense profits—the South produced 75% of the world's cotton by 1860.

Slavery in the US: a timeline

In 1619, a ship with 20 captives landed at Point Comfort in Virginia, ushering in the era of American slavery. Scroll through this timeline to learn more about slavery in the US and its long lasting effects.

An animation of how the minimum wage changed every year from 1968 to 2018

In the United States, both the federal and state minimum wages have changed a lot over the years. See how—both in each state and at the federal level.

The US officially adopted an income tax in 1913

The US first levied income taxes during the Civil War, but modern income taxes became an American fixture in 1913. Two years earlier, Congress passed the 16th Amendment to give the government the right to tax individuals' and businesses' income. The US still technically levies the same federal income tax now as it did then—though it's evolved.

Despite the Juneteenth announcement that they were free, some enslaved people were still held captive.

When a state's minimum wage differs from the federal minimum wage, the higher number wins out.

Read Truth's account of escaping slavery in 1826

After her enslaver broke his promise to free her, Truth left before dawn, carrying her infant daughter and a bundle of clothes. She later found refuge with the Van Wagener family, who paid her master $20 for her freedom and $5 for her infant daughter.

The first recorded worker strike in the United States predates the American Revolution.

The origins and growth of the Juneteenth holiday

The American holiday of Juneteenth celebrates the emancipation of African American slaves, a process which unfolded over the four years of the Civil War and several months afterward. June 19 took on special significance as the day Union officials proclaimed slaves free in Texas in 1865, the last holdout after the Civil War ended. Roughly 4 million people were freed from slavery as a result of emancipation. Read this brief article summarizing the holiday's development.

The federal minimum wage in the US has been $7.25 per hour since 2009—making this the longest the US has gone without a minimum wage increase since 1938.

There's a widespread taboo around talking about money in the US, but that taboo is widely different across the lower and upper classes, as well as amongst different races.

In the United States, asking someone how much money they make (or any questions about money, really) has long been considered rude. But where did this social norm come from originally? And why do Americans still feel so awkward talking about money? This article from The Atlantic takes a deep dive into the socioeconomic forces that created the money taboo. Read the full piece here.

Since 1913, Americans have paid income taxes at varying rates

In the 2020s, the top marginal tax rate has floated around 37%, relatively lower than previous eras. Some have called for boosting the rate significantly to tax the highest earners.

What's the role of forced prison labor in a land where slavery is illegal?

Companies across the South profited off the forced labor of people in prison after the Civil War. This hourlong investigative podcast episode explores the role forced (and often unpaid) prison labor has played in the US since slavery was abolished.

'Vacation' wasn't common for Americans until the mid-1800s, when it became a luxury for the wealthy.

See every time the minimum wage has been raised.

The 13th Amendment's criminal exception enabled new forms of forced labor

Southern states exploited the amendment's clause allowing slavery "as punishment for crime" to arrest thousands of Black Americans on minor charges, leasing them to private employers through convict labor systems that persisted for decades.

The 1935 Social Security Act drew inspiration from European social insurance models

Many of these, such as German Chancellor Otto von Bismarck's 1889 retirement system, emerged decades before America adopted them. This article dives into the modern history of economic security and the key legislation that created Social Security.

Hear how the world reacted to the American Civil War

European nations closely watched the Civil War for its economic and political consequences. Some European nations quietly engaged diplomatically with the Confederacy but withheld recognition. When the Union made slavery's abolition a central cause, European public opinion turned sharply against the South.

Approximately 180,000 African Americans served in Union forces

About 180,000 Black soldiers—roughly 10% of the Union army—served in the United States Colored Troops after 1863. Despite lower pay and discrimination, they were crucial to the Union victory.

Timeline of women in labor history

In 1866, newly freed black women working as laundresses in Jackson, Mississippi, formed a union and went on strike for higher wages. But it wasn't until 1974, that the Coalition of Labor Union Women was founded as America's only national organization for union women. Want to find out more about the history of women in the labor movement? Click here for the full timeline.

The monthly minimum wage a full-time worker receives varies around the world

In Luxembourg, for instance, the monthly minimum was roughly $2,140 as of January 2023. But in Nigeria, it was just $68 a month. Of course, the cost of living varies by country too.

Feudal landholding organized medieval Europe’s economy without relying on slavery

From the 10th to 13th centuries, Europe’s agricultural system relied on localized hierarchies. Lords granted land to knights for defense, who in turn mainly oversaw free peasants paying rents in labor, goods, or money rather than living under slavery.

How America became a nation of gamblers

For thousands of years, humans have liked to gamble. What started as dice games and betting on chariot races became a way for states to generate revenue here in America. This article explores how states have been using gambling to pay for infrastructure and capital projects–and the cost it’s had on the citizens.

Nineteenth-century, hand-drawn infographics on US slavery and race

In the second half of the 19th century, researchers studying the behavior of the millions of emancipated Americans after the Civil War used "information graphics" to cut through the noise of racially charged debate. In this collection from Stanford, you can see century-old, stunningly hand-drawn data visualizations showing racial demographics, the effects of emancipation on cotton prices, and more.

The news delivered on the original Juneteenth freed enslaved people in Texas, but it also offered vague guidance on what they should do next.

Robert Smalls escaped slavery by piloting a stolen Confederate ship to freedom, then became an influential Black political leader during Reconstruction.

The trans-Atlantic slave trade brought over 10 million enslaved people to the Americas.

In the Netherlands, the minimum wage amounts to a full-time salary of roughly $34,192 per year

The US minimum wage, however, only amounts to roughly $15K per year. This map shows how much minimum wage workers in countries around the world earn on an annual basis in US dollars.