D.C. voters overwhelmingly approved a law Tuesday phasing out the tipped minimum wage by 2027. The multi-year effort by labor groups to end businesses’ reliance on patrons’ tips to compensate workers prevailed, despite major pushback from the local restaurant industry.

The measure’s success also comes four years after the passage of a nearly identical initiative and its subsequent overturn by the D.C. Council.

With 47% of precincts reporting around 9:50p.m., more than 52% of voters supported Initiative 82, while nearly 26%decided against it, according to the Associated Press.

The vote fundamentally changes the way employers pay their tipped workers.

Currently, employers can pay their tipped workers a subminimum wage of $5.35 per hour, with the expectation that customers will get their workers’ total earnings to the full minimum wage of $16.10. If tips do not, then employers by law have to make up the difference.

But starting next year, when the initiative kicks in, the tipped minimum wage of $5.35 is required to increase by a dollar or two every year until it is equal to the full minimum wage. By 2027, employers can no longer rely on gratuity but have to pay all their workers the full prevailing minimum wage, which is based on inflation.

The initiative does not outlaw tipping. However, many owners will likely consider adding a service charge to reduce the effects of Initiative 82. Unlike tips, that service charge goes directly to employers, who can use the money as they...

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