If passed, Initiative 82 would end the tipped wage system that exists in some restaurants and bars in D.C.
WASHINGTON — Some lawmakers are looking to build a better restaurant industry in D.C. by passing the "District of Columbia Tip Credit Elimination Act of 2021," aka Initiative 82.
If passed, Initiative 82 will eliminate the sub-minimum tipped wage of $5.35 per hour and ensure all tipped workers get D.C.'s full minimum wage of at least $16.10 plus tips.
The initiative would be rolled out slowly, with tipped employees starting to earn $6 per hour by January 2023, $8 by next July and then two dollar raises each year until 2027.
Under current law, employers of employees classified as "tipped workers" may take credit against tipped wages received by workers to satisfy the minimum wage guaranteed to all workers by law. Initiative 82 would gradually end the credit, such that the mandatory base wage paid by employers shall increase until 2027 when the mandatory base wage matches the minimum wage established by District of Columbia law (currently $15.20 per hour, indexed to inflation).
Tips will continue as the property of employees and will be in addition to the statutory minimum hourly wage.
The increase would not apply to employees of the District of Columbia because their wages are governed by the Minimum Wage Act Revision Act of 1992, which established the minimum wage at $15.00 on July 1, 2020, and tied it to inflation.
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