Come November, D.C. voters will decide whether to raise the minimum wage for tipped workers through Initiative 82.
Sound familiar?
Flashback: A similar measure by a different name, Initiative 77, passed in 2018. It was later overturned by the D.C. Council.
Driving the news: Legal battles surrounding the measure have continued this time around. The D.C. Court of Appeals last week denied Initiative 82 opponents their last chance to keep the measure off the ballot.
Catch up quick: Currently, employers of tipped workers can take advantage of the tip credit. That means employers can pay less than minimum wage (about $5 an hour) as long as each worker's hourly wage plus tips meets or exceeds the minimum wage.
- If the credit were eliminated under the ballot measure, employers would have to pay by 2027 the standard minimum wage (currently $16.10) regardless of what workers earn in tips, with steady increases each year between now and then.
Why it matters: Initiative 82 would create a fundamental shift for workers who’ve traditionally relied on tips for the bulk of their income and could have far-reaching effects on the dining scene.
Supporters of the measure, like Paul Schwalb with Local 25 – a union representing 7,500 hospitality workers in D.C. – say inflation and the rising cost of living make higher baseline pay even more critical for tipped workers. Others argue that eliminating the tipped wage credit would greatly benefit back-of-house staff by evening the playing field, as...
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