1. Non-Tipped Workers
- New minimum wage: $17.95 per hour (up from $17.50) for all non-tipped employees, regardless of employer size.
2. Tipped Workers
- Base cash wage rises: from $10 to $12 per hour for tipped roles (e.g., servers, bartenders).
- Tip credit: Employers must ensure tipped employees earn at least the total $17.95 hourly wage when combining base pay and tips. If tips fall short, employers must make up the difference.
⚠️ Pause on the Tipped Wage Increase
Despite voter-approved Initiative 82 mandating the tip-wide wage increase, the D.C. Council voted on June 3 to pause the $2 bump for tipped workers, citing concerns from small businesses (especially restaurants) about rising labor costs does.dc.gov+15axios.com+15fox5dc.com+15.
- The pause is an emergency measure lasting 90 days, intended to give time for further review.
- Mayor Muriel Bowser has expressed support for pausing or even repealing the increase as part of her 2026 budget dccouncil.goven.wikipedia.org+3axios.com+3wtop.com+3.
💬 Reactions from the Community
- Restaurant owners argue that the raise endangers small businesses, pointing to closures and financial strain .
- Labor advocates highlight that the pause subverts the will of voters—74% supported Initiative 82—and could destabilize tipped workers who planned on the increase.
What’s Next?
- Over the next three months, the Council will gather data on how the higher tipped wage would impact businesses.
- The decision may hinge on Congress’s potential action to exempt tips from federal taxes, which could ease wage pressures.
What This Means for Workers & Businesses
| Group | Impact |
|---|---|
| Non‑tipped staff | See a direct $0.45/hour increase starting July 1 |
| Tipped staff | Still at $10/hour base for now; future uncertain depending on Council and federal action |
| Employers | Must post updated minimum wage notices; monitor developments on tipped wage policy |
In Summary
- Standard wage: now $17.95/hr for all workers.
- Tipped wage: set to rise to $12/hr, but currently paused pending Council review.
- Voter intent vs. economic caution: D.C. is balancing democratic mandate with concerns about restaurant stability. The upcoming months may see further legislative movement or adjustments.
