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Divided D.C. Council Votes to Pause Tipped Wage Increase, Full Repeal Remains Uncertain

  • The D.C. Council voted 8-4 on Tuesday, June 3, 2025, to pause the $2 increase in the tipped minimum wage set to take effect July 1 under Initiative 82.
  • This pause followed economic concerns from restaurant owners and officials, including Mayor Muriel Bowser, who support repealing or suspending the wage increase amid rising labor costs and business closures.
  • Initiative 82, passed by nearly 75% of voters in 2022, aimed to raise tipped worker wages from $10 to $12 in 2025 and eventually to $17.50 by 2027, affecting restaurant and hospitality employees.
  • Opponents of the wage increase pause, including labor organizations like One Fair Wage, argue that halting the wage hikes during a time of financial hardship would negatively impact workers, with Saru Jayaraman emphasizing that such a move could cause significant harm amid the ongoing affordability crisis.
  • The pause provides temporary clarity for businesses while local and federal debates, including the recently passed No Tax on Tips Act offering moderate tax relief to tipped workers, continue to shape wage and tax policies.
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In an emergency vote on Tuesday, the DC Council voted to pause the increase in the minimum wage for people with tips in the city, which would have entered into force on July 1. Initiative 82 was approved by an overwhelming majority of DC voters in 2022 and means raising the minimum wage for workers receiving tips (such as restaurant employees or hairdressers) from $10 to $12 in July 2025 to $17.50 in 2027.

·Washington, United States
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Center

Tipping culture is "out of control," more Americans say in annual poll

Tip creep? A majority of U.S. adults said they have a negative view of tipping, according to a 2025 survey. Here's who typically gets the most – and least – tips.

·Atlanta, United States
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restaurantdive.com broke the news in on Tuesday, June 3, 2025.
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