Last year, D.C. passed a ballot initiative that will gradually raise the minimum wage for tipped workers — and diners have been confused about how much to tip since.
As of May 1, the minimum wage for tipped employees increased from $5.35 to $6 per hour, but it will jump another $2 per hour on July 1. By July 2027, the District of Columbia will have just one minimum wage for both tipped and non-tipped employees, joining eight other states and territories, including California, Alaska, Nevada and Guam with single wage laws for hourly workers. The current minimum wage in D.C. is $16.10 per hour, but will increase to $17 per hour on July 1.
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Even before Initiative 82 began its gradual march toward one minimum wage, bar and restaurant owners had instituted service charges — to recognize the risks involved in hospitality work during the pandemic and to offset the loss of tips when indoor dining was prohibited or greatly limited. But the ballot measure has pushed more proprietors to add service charges to their checks — or to increase menu prices — to help cover higher payroll costs.
In March, the Office of the Attorney General of the District of Columbia sent letters and fliers to local businesses to provide guidance on how to inform the public about service charges. The attorney general said restaurants and bars must “clearly and prominently disclose fees” at the start of the ordering process, and they must accurately describe the reason for the fee. The office...
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