Rise of Base Wages and Diminishing Tips

The landscape of restaurant server wages has witnessed significant changes in recent years, driven by a combination of factors such as state-level minimum wage laws, labor cost increases, and evolving tipping regulations. As per recent data from ADP Research, the base wages for restaurant servers now constitute 43% of their paycheck on average, marking a notable 35% increase from January 2020 to September 2024. This shift signifies a growing reliance on base pay rather than tips as a primary income component for servers.