D.C. Council Amends Tipped Minimum Wage Law, Sparking Controversy

On July 28, 2025, the D.C. Council voted 7-5 to amend Initiative 82 (I-82), a measure originally approved by voters in 2022 to eliminate the tipped minimum wage by 2027. The amendment, introduced by Councilmembers Christina Henderson and Charles Allen, modifies the wage increase schedule for tipped workers, capping the tipped minimum wage at 75% of the full minimum wage by 2034.

This legislative move has ignited significant controversy, with labor advocates arguing that it undermines the will of the voters, while the Restaurant Association Metropolitan Washington supports the amendment as a necessary compromise for the struggling restaurant industry.

Background on Initiative 82

In November 2022, Washington, D.C., voters approved Initiative 82 with 74% support, aiming to phase out the tipped minimum wage by 2027, aligning it with the standard minimum wage. This initiative was a revival of Initiative 77 from 2018, which the D.C. Council had previously overturned.

Details of the Amendment

The amendment, introduced by Councilmembers Christina Henderson and Charles Allen, caps the tipped minimum wage at 75% of the full minimum wage by 2034, instead of achieving parity by 2027. The revised plan maintains the tipped minimum wage at $10 per hour through July 2026, representing 56% of the full minimum wage of $17.95. Starting in 2026, the tipped wage will increase biennially by 5% increments until it reaches 75% of the full minimum wage in 2034.

Council Vote and Reactions

The amendment passed with a 7-5 vote. Councilmember Christina Henderson stated, "No one is happy 100 percent here. We want workers to be able to have the annual wage growth and restaurants to be able to have more manageable labor costs. We think that this strikes a balance."

Councilmember Brianne Nadeau, who voted against the amendment, expressed concern over disregarding voter intent, saying, "The voters told us what they wanted. And this is not it. This council should stop telling voters they don't know what's best."

Shawn Townsend, president and chief executive of the Restaurant Association Metropolitan Washington, supported the council's decision but noted, "This is not the win or the compromise that we would have hoped for."

Saru Jayaraman, president of One Fair Wage, criticized the amendment, stating, "This isn't just a rollback of wages — it's a rollback of democracy."

Implications for the Restaurant Industry

The amendment aims to provide more wage transparency. Starting in 2026, pay stubs must list all sources—including tips, bonuses, service charges, etc. The hospitality industry had faced mounting labor costs, inflation, and declining patronage, especially due to regional layoffs, and many businesses had added service fees as a workaround.

Labor Rights and Wage Equity Debate

The amendment has sparked significant controversy. Labor advocates argue it undermines the will of the voters, while the Restaurant Association Metropolitan Washington supports the amendment as a necessary compromise for the struggling restaurant industry.

Historical Context and Democratic Process

This is not the first time the D.C. Council has modified voter-approved initiatives regarding tipped wages. In 2018, the council overturned Initiative 77, which also aimed to eliminate the tipped minimum wage.

The D.C. Council's amendment to Initiative 82 reflects the ongoing tension between economic considerations and respecting voter decisions, highlighting the complexities of balancing industry viability with labor rights and democratic governance.