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

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.