Under current law, D.C. employers are able to pay their tipped workers a base (sub-minimum) wage of $3.33 per hour, so long as the workers make enough in tips to push their earnings to at least the District’s minimum wage, which is currently $12.50 per hour. If the tipped worker does not earn at least the minimum wage for all hours worked, the employer is required to make up the difference.
However, on June 19, 2018, Washington D.C. voters approved Initiative 77, a contentious ballot initiative that would change this law. Specifically, this Initiative would raise the city’s minimum wage to $15 per hour and phase out the sub-minimum wage for tipped workers; it will gradually hike the tipped minimum wage by $1.50 each year until it reaches $15 in 2025, and by 2026, the minimum wage will be the same for all workers. Through this Initiative, the District of Columbia would become the first major city to outlaw the practice of allowing employers to pay a lower hourly wage to workers who earn tips, although that practice is unlawful in California, Oregon, Washington, Alaska, Nevada, Montana, and Minnesota. And officials in New York and Michigan are also considering ending their tipped-wage system this year.