Washington DC considers repealing minimum wage increases for tipped workers Washington DC considers repealing minimum wage increases for tipped workers

Washington DC considers repealing minimum wage increases for tipped workers
17 Jul 2018

Washington DC Council is considering whether to repeal Initiative 77, a voter-approved measure to increase pay for tipped workers.

Under the city’s current minimum wage law, businesses are allowed to pay a lower minimum wage to employees who earn tips, so long as the tips are enough to raise the workers’ pay to at least the standard minimum.

But under Initiative 77, the minimum wage for tipped employees would increase to match the city’s standard minimum wage of US$15.00 per hour by 2026. The measure was approved by local voters in June, but is now under reconsideration after seven of the council's 13 members introduced an amendment.

The standard minimum wage is due to rise from US$12.50 to US$15.00 by 2020. The minimum for tipped employers is scheduled to increase to US$5.00 per hour by 2020, with employers required to make up the difference if workers do not receive enough tips to make the figure. Tipped workers currently receive US$3.33 an hour. Minimum wages for tipped workers would subsequently continue to increase so they receive the same as other employees by 2026.

The aim of the initiative is to provide a steady and consistent income to tipped workers while also protecting them (particularly women) from mistreatment by customers as they would no longer be so dependent on tips for their livelihood.

But opponents argue that the initiative is unnecessary as most tipped workers make more than the minimum wage anyway. Another concern is that smaller restaurants would need to increase the price of food and/or cut staff and staff hours to pay for the additional labour costs.

NYC Food Policy points out though that in states that already provide a universal minimum wage for both tipped and non-tipped workers, poverty rates for waiters and bartenders are lower, but restaurants do not make lower profits.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

 

 

OTHER ARTICLES THAT MAY INTEREST YOIU

US States Consider Payroll-Deduction-Based Pension Plans
New York Governor’s Payroll Tax Proposals Could Have “Unintended Consequences”
Coalition Of US States To Sue Federal Government Over Tax Reform

Washington DC Council is considering whether to repeal Initiative 77, a voter-approved measure to increase pay for tipped workers.

Under the city’s current minimum wage law, businesses are allowed to pay a lower minimum wage to employees who earn tips, so long as the tips are enough to raise the workers’ pay to at least the standard minimum.

But under Initiative 77, the minimum wage for tipped employees would increase to match the city’s standard minimum wage of US$15.00 per hour by 2026. The measure was approved by local voters in June, but is now under reconsideration after seven of the council's 13 members introduced an amendment.

The standard minimum wage is due to rise from US$12.50 to US$15.00 by 2020. The minimum for tipped employers is scheduled to increase to US$5.00 per hour by 2020, with employers required to make up the difference if workers do not receive enough tips to make the figure. Tipped workers currently receive US$3.33 an hour. Minimum wages for tipped workers would subsequently continue to increase so they receive the same as other employees by 2026.

The aim of the initiative is to provide a steady and consistent income to tipped workers while also protecting them (particularly women) from mistreatment by customers as they would no longer be so dependent on tips for their livelihood.

But opponents argue that the initiative is unnecessary as most tipped workers make more than the minimum wage anyway. Another concern is that smaller restaurants would need to increase the price of food and/or cut staff and staff hours to pay for the additional labour costs.

NYC Food Policy points out though that in states that already provide a universal minimum wage for both tipped and non-tipped workers, poverty rates for waiters and bartenders are lower, but restaurants do not make lower profits.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

 

 

OTHER ARTICLES THAT MAY INTEREST YOIU

US States Consider Payroll-Deduction-Based Pension Plans
New York Governor’s Payroll Tax Proposals Could Have “Unintended Consequences”
Coalition Of US States To Sue Federal Government Over Tax Reform

Leave a Reply

All blog comments are checked prior to publishing