D.C. diners will notice higher menu prices and service charges as Initiative 82 takes effect in just a few months.

Why it matters: The law creates a fundamental shift in how tipped workers get paid and diners' reactions could forever change the tipping culture in D.C.

Catch up quick: Tipped workers in D.C. currently make $5.35 per hour before tips. That’ll increase gradually over the next four years, starting with an increase to $6 in May and $8 in July. By 2027, employers will have to pay tipped workers the same minimum wage as any other hourly D.C. worker.

State of play: There’s little recent precedent in the U.S. for how to implement a law like I-82, leaving D.C. restaurant owners to guess at how customers will respond to the changes.

• Restaurant owners and staff are concerned that tipped workers will make less overall if diners decrease tips due to price increases and fees.

Threat level: Smaller mom-and-pop restaurants are expected to feel the largest financial impact from the new law, putting them at greater risk of closing.

D.C. restaurant owner Louie Hankins tells Axios that diners should expect different I-82 strategies based on the type of restaurant.

• He plans to use QR codes instead of a cashier for takeout at taco spot Rito Loco. His rooftop bar El Techo will add a 4% service fee and increase menu prices over time. Price increases are also coming to the upscale Italian restaurant Quattro Osteria.

Hankins says he’s worried about the D.C. restaurant scene losing...

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