On June 19, 2018, Washington, D.C. voters approved Initiative 77. The initiative was designed to provide a universal minimum wage for both tipped and non-tipped workers. The initiative will:
- gradually increase the minimum wage to $15 per hour by 2020;
- gradually increase the minimum wage for tipped employees so that they receive the same minimum wage directly from their employer as other employees by 2026; and
- adjust the minimum wage rate to the Consumer Price Index (CPI) starting in 2021.
The minimum wage increases will not apply to D.C. government employees or D.C. government contractors.
Currently, the minimum wage is $12.50 per hour. For tipped workers, like bartenders and food servers, the minimum wage is $3.33 per hour provided that tips make up the difference. If a tipped worker does not earn enough in tips to reach $12.50 per hour threshold, the employer has to make up the difference.
The initiative has divided D.C. voters and council members. Supporters like the Restaurant Opportunities Centers United argue that the measure guarantees reliable income for workers. Furthermore, they believe that predictability and stability to worker wages will protect female workers from sexual harassment. Food servers will be less dependent on tips and more empowered to stand up against harassment. Opponents like the Save Our Tips group argue that the initiative will raise labor costs for restaurants, forcing some to cut jobs or even close their business. Opponents also argue that the new measure will not solve the problem of sexual harassment. They believe that the sexual harassment problem will depend on employers following up on their obligations of keeping their workers safe.
The initiative will undergo a 30-day congressional review before it can become law. During this time, the measure can be altered or overturned. Compliance Poster Company will continue to monitor. Make sure to visit our blog soon!