D.C. Considers Repealing Minimum Wage Law for Tipped Employees

On Wednesday, the Washington D.C. city council discussed the FY 2026 budget, focusing on proposals to repeal Initiative 82, which eliminated the tip credit for restaurant workers. Although the initiative was supported by nearly 75% of voters in November 2022, it has negatively impacted the restaurant industry and worker earnings. Since its implementation, mandatory base pay for tipped workers has gradually increased, yet employment in the sector has declined significantly—over 1,600 full-service jobs lost from May 2023 to December 2024. In contrast, neighboring Virginia and Maryland saw a much smaller decline. Earnings also fell, with workers losing an average of $1,800 annually, hitting the lowest income quartile the hardest, losing $3,400. Mayor Muriel Bowser has called for repealing the initiative to aid growth in the restaurant industry. The council’s deliberations reflect the substantial effects of this legislation on both employment and earnings within the district.

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