Ottawa, November 1 - Tipping is not just a quick gesture of gratitude for a service; it is a centuries-old practice with a complex history. Its roots date back to the Roman era. However, some experts trace it to 16th-century England, where patrons in coffeehouses and pubs would leave coins in urns marked “To Ensure Promptitude” (TIP), paying extra upfront for attentive service. In the United States, however, tipping evolved into a problematic practice. After the Civil War, former slaves with limited job opportunities often worked as waiters, servants, and porters. Railroad companies adopted tipping customs, using tips as an excuse to avoid fair wages or wages altogether, assuming customer generosity would fill the gap. Dubbed “continued slavery,” this system thrived on customers’ guilt and a perceived moral duty to tip, perpetuating a cycle of suppressed wages sustained by guilt-tripped guilt-tips.

Today, U.S. tipped workers still experience disparities. The federal minimum wage for tipped employees is $2.13 per hour, compared to $7.25 for most other workers, except in a few states requiring all employees to earn the same minimum wage. In Canada, Quebec alone maintains a lower minimum wage for tipped workers. While the standard minimum wage in Quebec is $15.75 per hour, for employees in tip-based professions, it’s only $12.60. 

But is this model truly fair? In Canada, where most provinces maintain equal minimum wages for all workers, tipping may need to be updated. Research from the University of Guelph found that in 2018 the average Canadian server made roughly $30 per hour, with those in high-end establishments often exceeding six-figure annual incomes. With inflation and an increase in average tip percentages, today’s figure likely sits around $40 per hour. In this context, tipping no longer serves as a financial bridge, instead amplifying income inequality between different service industries.

To be sure, service roles, especially in sit-down restaurants, are demanding. Canadians seem to agree, with 77% believing that tipping is appropriate in restaurants. However, if tipping was originally intended to compensate for lower wages in tipping-based jobs, this rationale loses validity when tipped employees earn the standard minimum wage. Additionally, these variations raise the question of which services genuinely deserve tips and which do not. Why not tip a gas station attendant who goes above and beyond, a fast-food worker who ensures accuracy with your order, or a doctor who performs a successful operation? Many Canadians are experiencing this firsthand, growing increasingly frustrated as vague tipping principles drive gratuity requests to spread across more industries with escalating suggested amounts.

This trend was accelerated by the COVID-19 pandemic when service industry workers suffered reduced hours and incomes. Aware of workers’ financial challenges, customers tipped generously out of empathy, even as inflation strained their budgets. Square, a payment processing company, reported that from 2016 to 2022, the average restaurant tip in Canada rose from 16% to 20%, while inflation climbed by 19%. Although tip percentages have slightly decreased since, inflation has further eroded consumer buying power, with the average meal cost rising from $25 in 2019 to $31 today.

It’s now common to see point-of-sale terminals suggesting tips of 18%, 20%, or even 30%. These prompts can pressure patrons into tipping high percentages that don’t necessarily improve service quality. Payment terminals and service staff often benefit from these increases while customers bear the rising cost. Moreover, tips are typically calculated on the post-tax amount, amplifying the effect. For instance, a $31 meal becomes $35 with tax, and a 20% tip on top brings the total to $42. Dining out is increasingly a financial strain, as customers face a double penalty from inflation and climbing tip expectations.

Suppose tipping is intended “to ensure promptitude,” then tipping after service contradicts this purpose. And if it’s to reward quality service, why do 78% of Canadians feel tipping is expected regardless of service quality? Further, a Cornell study found that tip size is only weakly related to service quality, showing an increase of merely 1.5% for excellent service (rated 5/5) compared to poor service (1/5). If tipping truly rewards effort, why should a tip be a percentage of a meal’s price? A higher bill doesn’t necessarily mean the server worked harder. Pouring a $100 bottle of wine hardly requires more effort than a $10 bottle yet results in a much larger tip. 

Quebec is addressing the tipping issue through legislative reform with Bill 72, titled An Act to Protect Consumers Against Abusive Commercial Practices and to Offer Better Transparency with Respect to Prices and Credit. This bill proposes several amendments to the Consumer Protection Act to curb excessive fees, mandate transparency, and ensure tip calculations exclude taxes. Justice Minister Simon Jolin-Barrette explained that Bill 72 aims to “simplify life for families by tackling everyday irritants and putting an end to abusive and harmful practices.” Bill 72’s Section 67 introduces provisions requiring that preset tip options exclude Quebec and federal sales taxes, clearly display all tip-related elements, and enable consumers to choose their tip amount freely.

While Bill 72 is only a preliminary step toward addressing an entrenched social custom, it represents progress. For now, though, customers must still confront tipping prompts on payment screens – screens that increasingly seem to “ask a few questions” before accepting payment.

Works Cited:

Bill 72, An Act to protect consumers against abusive commercial practices and to offer better transparency with respect to prices and credit, 1st Sess, 43rd Leg, Quebec, 2024 (consideration of the commission's report 31 October 2024).

Christopher Liew, “Is tipping getting out of hand? Here are some lessons from other countries” (last modified 23 October 2023), online: <ctvnews.ca/business/is-tipping-getting-out-of-hand-here-are-some-lessons-from-

other-countries-1.6567894>.

Government of Quebec, “Dépôt du projet de loi no 72 - Pour protéger le portefeuille et le pouvoir d'achat des familles québécoises” (12 September 2024), online: <quebec.ca/nouvelles/actualites/details/depot-du-projet de-loi-no-72-pour-proteger-le-portefeuille-et-le-pouvoir-dachat-des-familles-quebecoises-58192>.

James Surowiecki, “Check, Please” (28 August 2005), online: <newyorker.com/magazine/2005/09/05/check- please-3>.

Jason Kirby, “Inflation is improving, but pervasive tipping makes Canadians feel otherwise” (24 October 2024), online: <theglobeandmail.com/business/article-tipping-culture-inflation-consumers/>.

Josie Hodgson, “To tip or not to tip: The question of gratuities in the age of ‘tipflation’” (20 February 2024), online <thetribune.ca/student-life/to-tip-or-not-to-tip-the-question-of-gratuities-in-the-age-of-tipflation-20022024/>.

Michael Lynn, “The Relationship between Tipping and Service Quality: A Comment on Bodvarsson and Gibson's Article” (2000) 37:1 Soc Science J 131.

Minister of Labour of Quebec, “Le taux général du salaire minimum passera à 15,75 $ l'heure le 1er mai 2024" (31 January 2024), online: <quebec.ca/en/government/ministere/ministere-du-travail>.

Ofer H Azard, “The history of tipping—from sixteenth-century England to United States in the 1910s” (2004) 33:6 J Socio-Econs 745.

Olivia Bush, “Minimum Wage Statistics in Canada” (24 October 2024), online: <madeinca.ca/minimum-wage-statistics-canada/>.

Rachel E Greenspan, “‘It’s the Legacy of Slavery’: Here’s the Troubling History Behind Tipping Practices in the US” (20 August 2019), online: <time.com/5404475/history-tipping-american-restaurants-civil-war/>.

The Globe and Mail, “Quebec reaches a tipping point on consumer prices” (12 October 2024), online: <theglobeandmail.com/opinion/editorials/article-quebec-reaches-a-tipping-point-on-consumer-prices/>.

Tristin Hopper, “The $100,000 a year waitress isn't a myth: Some hard truths about tipping in Canada” (29 November 2018), online: <nationalpost.com/news/the-100000-a-year-waitress-isnt-a-myth-some-hard-truths-about-tipping-in-canada>.