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February 2023: D.C. Council Votes to Delay Minimum Wage Increase for Tipped Workers to May

21 Feb

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

What happened?
On January 17, 2023, the Council of the District of Columbia approved emergency legislation Tuesday, postponing the implementation of tipped minimum wage to May 2023.

What are the details?
The Initiative Measure No. 82, the District of Columbia Tip Credit Elimination Act of 2022, was enacted on November 30, 2022 (D.C. Act 24- 1149) and was set to date to increase the tipped minimum wage at no less than $6.00 an hour with tips on top as of January 1, 2023. However, the legislation was transmitted to congress on January 10, 2023, and has a projected law date of March 8, 2023. This emergency changes the effective date of the $6.00 an hour tipped minimum wage from January 1, 2023, to May 1, 2023.

Minimum Wage
Beginning July 1, 2023, the minimum wage in the District of Columbia will increase from $16.10 per hour to $17.00 per hour for all workers, regardless of the employer’s size.
 
Beginning May 1, 2023, the base minimum wage for tipped employees will increase from $5.35 per hour to $6.00.

Beginning July 1, 2023, the base minimum wage for tipped employees will increase from $6.00 per hour to $8.00. However, if an employee’s hourly tip earnings (averaged weekly) added to the base minimum wage do not equal the District’s full minimum wage, the employer must pay the difference.

For more information, please see the links below:

2023 Minimum Wage Increase Notice

Initiative Measure No. 82

Article 1Article 2

What do employers need to do?
Employers should review the links provided above and adjust their minimum wage to comply with the law once it goes into effect.


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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