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Reminder: DC Tip Credit Phase-Out Begins May 1, 2023

19 Apr

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Update Applicable to:
All employers in the District of Columbia (Washington D.C)

What happened
In our previous communication here, we notified you that Mayor Bowser signed emergency legislation D.C Act 25-23, which delayed the implementation of its tip credit phase-out to May 1, 2023. This is a reminder for that update.

What are the details?
The minimum base wage for tipped employees in the District of Columbia will increase to $6 per hour on May 1, 2023. Two months later, on July 1, it will increase to $8 per hour.

The full tip credit phase-out schedule is as follows:

  • May 1, 2023: $6 per hour
  • July 1, 2023: $8 per hour
  • July 1, 2024: $10 per hour
  • July 1, 2025: $12 per hour
  • July 1, 2026: $14 per hour
  • July 1, 2027: same as the regular minimum wage (employers can’t take a tip credit)

For more information, please see the links below:

D.C Act 25-23

Previous Vensure Communication (February 15, 2023)

Ballotpedia

Article

What do employers need to do?
Employers should review the links above and adjust their payroll to comply with the law.


This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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