D.C.’s new law that phases out tipped minimum wage could potentially have significant ramifications for Arlington, local restaurateurs say.
Voters in the District last week approved Initiative 82, a measure that essentially ends an employer’s reliance on tips from customers to ensure paying minimum wage to workers.
Currently, employers can pay tipped workers a minimum wage below that of non-tipped workers, contingent on tips making up the difference. Starting next year, however, D.C. employers — primarily restaurants — will no longer be able to do that and will have to pay a gradually increasing rate until 2027, when the minimum wage of tipped workers is set to match non-tipped employees.
As a result of Initiative 82 passing, a number of D.C. restaurants are expected to pass at least some of the cost on to diners by either raising menu prices or instituting a service charge on bills.
This has some local restaurateurs thinking about the impact across the river.
Mark Bucher is the owner of Medium Rare, the steakhouse with locations in D.C., Bethesda and Arlington. He believes that the potential for higher costs in the District is going to drive a lot of diners to Northern Virginia.
“I think this is Mardi Gras,” Bucher told ARLnow. “For Virginia restaurants, in Arlington especially, this is a gift that was given from a misunderstood initiative in D.C.”
He said that while it may take a couple of years, it will likely end up being noticeably less expensive to eat and drink in...
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