A new report from two labor groups says that many bars and restaurants in D.C. are failing to report required data on how much tipped workers are being paid, but an association representing the hospitality industry says that any such failures are actually the fault of the D.C. government.
The dispute dates back four years and involves the tipped minimum wage, the fate of which will be decided (again) by voters during the Nov. 8 election.
When the D.C. Council overturned Initiative 77, the 2018 ballot measure that would have phased out tipped minimum wage, lawmakers passed compromise legislation intended to assuage concerns that the system enabled wage theft. Among other things, the law required employers of tipped workers and payroll companies to report certain wage data that would help identify whether workers were in fact being paid at least the minimum wage.
That wage reporting does not seem to be happening, but the reason why is a matter of debate.
A report released Wednesday appears to show widespread noncompliance with the 2018 law. The report says most D.C. bars and restaurants with liquor licenses have not reported wage data to the city in recent years. But the Restaurant Association of Metropolitan Washington is pushing back against those accusations, citing the government’s botched implementation of the 2018 law. Beginning Jan. 2020, employers of tipped workers were required by law to use a payroll business, and third-party companies were supposed to submit the...
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