Latest news with #D.C.Council
Yahoo
2 days ago
- Business
- Yahoo
Restaurant owners, workers hold competing rallies over potential repeal of Initiative 82
WASHINGTON () — Wednesday, business owners and workers held competing rallies outside the Wilson Building, as the D.C. Council considers the fate of Initiative 82. Initiative 82 was passed in November of 2022 and implemented the following Spring. The voter backed law eliminates the tipped minimum wage by gradually raising wages over the next several years. But that law is now in question, as Mayor Muriel Bowser proposed repealing I-82 under her 2026 budget. 'The economy we're dealing with, the environment for restaurants is vastly different than the economy and the environment that restaurants were operating in when this ballot measure was advanced,' said Bowser back in May. It's a proposal some restaurant and bar owners support. 'It's been a pretty tremendous impact to our payroll,' said Diane Gross, co-owner of Cork Wine Bar and Market. 'With rising costs, federal workers losing their jobs, tariffs, it's all made it much, much harder to actually make any money in our business.' Gross said the impacts ultimately hit the employees. 'In order to make the numbers add up for us and to stay open we've had to cut jobs, we've had to cut hours, we've had to take employees off of certain shifts,' she said. She and others are calling on the Council to repeal I-82. 'We're hurting. This was not what was happening in 2022 when this passed, it's a totally new normal,' she said. DC Council votes to pause July 1 wage bump under Initiative 82 The plea from restaurant owners comes one day after the Council the next pay raise allocated under I-82. This, as they consider how to move forward all together. Alexis Zosel, a barista in Mount Pleasant, called any repeal a 'slap in the face' to workers. 'Respect the will of the voters. These are the same voters who voted you into office,' she said. Zosel said she's seen her pay increase as a result of I-82. Initially, she said her employer raised her pay from $9 an hour plus tips, to the full citywide minimum wage of about $17 an hour. To address the rise in costs, a service fee was instituted on all checks. However, she said that led to confusion and a drop in tips. Her employer ultimately removed the service charge and opted to raise menu prices. 'Since then, I've seen my wages raise 18%. People are tipping more and it's not confusing,' said Zosel. 'People are okay with paying the higher prices. I think they understand there's inflation, there's rising costs and labor and goods, things like that.' She also noted that I-82 has made her income more stable. 'Tips aren't secure. They vary by what position you might have. They vary by what restaurant you work in. There's discrimination,' she said. 'There's just a lot of things at play that can affect those things so just asking for the full minimum wage feels like the bare minimum.' The Council has had mixed reactions to both a pause and potential full repeal. Though Ward 4 Councilmember Janeese Lewis George said there should be no confusion on what to do. 'I'm just incredibly frustrated that we are as a city, relitigating what has been litigated for the last couple of years again,' she said. 'The residents of this city have voted overwhelmingly twice that they believe that tipped workers deserve to have a minimum wage just like every other worker in the city.' She does not support a pause or repeal. 'The timeline has been known since this was enacted. We've known for two years, this July 1, this next increase was going to come,' said the councilmember. 'So I don't know why we need to pause while we're contemplating the budget of all things right now.' The Council will spend the next month debating the budget, which includes the repeal of I-82. It's scheduled to take its first vote on the budget on July 14. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Business
- Yahoo
DC Council pauses $2 raise for tipped workers
The Brief D.C. Council voted to delay scheduled $2 wage increase for tipped workers. Mayor Bowser pushing to repeal Initiative 82, citing economic challenges. Council's decision has sparked controversy among business owners and workers. WASHINGTON - Tipped workers in the District will not see their scheduled wage increase next month after the D.C. Council voted Tuesday to pause the $2 raise. The decision comes as Mayor Muriel Bowser seeks support for her proposed budget, which aims to address economic challenges for the city. Economic pressures are being felt across sectors, with rising office vacancy rates, uncertainty in the hotel industry, and restaurant closures at D.C.'s Wharf. Bowser is pushing for the repeal of Initiative 82, which raises the base wage for tipped workers. A salary increase to $12 an hour had been scheduled to take effect in July. READ MORE: DC Council votes to pause Initiative 82 $2 raise for tipped workers Restaurant owners argue that rising food costs and fewer customers make the higher wages unaffordable. The council's vohttps:// delays the increase to allow for further study of the economic impact, sparking controversy across the District. What we know Bowser's proposed 2026 budget outlines plans to move forward amid reduced federal support. The District was blindsided when Republican lawmakers blocked the release of local revenues. Federal downsizing could lead to vacant office spaces and the potential loss of 40,000 jobs over the coming years. Bowser's budget plan includes downtown investments during the Capital One Arena renovation, efforts to bring the Washington Commanders back to the RFK Stadium site, and incentives for tech companies through business development changes. While the budget avoids tax increases and layoffs, it imposes a hiring freeze and cuts certain social programs. The council is expected to vote on the budget in August. READ MORE: Tipping culture is "out of control," more Americans say in annual poll The Source Information in this article comes from the Restaurant Association of Metropolitan Washington and the D.C. City Council.
Yahoo
3 days ago
- Business
- Yahoo
DC Council votes to pause July 1 wage bump under Initiative 82
WASHINGTON () — The D.C. Council voted to pause Initiative 82, the voter-passed ballot measure that phases out the tipped minimum wage. 'Pausing the July 1 wage increase allows the Council to fully consider the data and the impact on our local restaurant industry as well as to assess the implications of federal tax changes on tipped income,' at-large councilmember Kenyan McDuffie said. Hospitality workers rally in DC to save Initiative 82 Under I-82, the tipped minimum wage gradually increases over the next several years until the wage matches the citywide minimum wage. The next wage increase would've gone into effect on July 1. The measure was passed overwhelmingly by voters in November 2022. However, restaurant owners have claimed the measure has made it more expensive to do business, pushing many to close shop altogether. One of the latest includes Haikan in Shaw, which posted on social media, 'the challenges of food costs, Initiative 82 and the economic climate in the city brought us to this decision.' It's why Mayor Muriel Bowser has proposed a full repeal of the measure in her 2026 budget. 'I would ask people to support this emergency bill,' said McDuffie, referring to the pause. 'To help provide clarity to businesses and workers as the council deliberates the budget.' Eight council members voted yes on the pause, though several stated they would not support a full repeal. Councilmember Brianne Nadeau voted no. 'A pause is akin to not respecting the will of the voters,' she said. 'But on top of that, we have workers here in D.C. who have been expecting this raise. People make plans when they know they're getting a raise.' Bowser proposes repealing Initiative 82 in upcoming budget Many of those people filled the council chambers on Tuesday, including Rachelle Yeung, who works at Aslin on 14th Street. 'I-82 has absolutely increased my pay,' she said. 'I make the tipped minimum wage currently and my employer is not willing to pay me more than the minimum. So the raises provided by I-82 is essential to increasing my wages.' Yeung, who has worked in the service industry since 2006, is against both the pause and the full repeal. 'I'm absolutely against the Mayor's proposal to repeal. That would essentially cut our wages in half,' she said. 'And who amongst us can afford to tell our medical providers, our cell phone providers, our landlords that we can only pay half our bills?' Many argued the restaurant industry is flourishing in D.C., despite I-82. 'Full service restaurant employment is back to pre-pandemic levels,' said councilmember Matt Frumin, reading from a report he requested from the city budget committee. 'The three months with the highest full-service restaurant employment since the data has been collected, since 1990, are No. 1, the most recent month for which we have data, April 2025. The next most recent month we have data, March 2025. And the next most recent month, February 205,' he said. 'The employment is strong. The wages we see from the data from the budget office show going up.' Others disagree. 'Certainly, the law boosted the cash wages employees are getting paid, but unfortunately, it's had an adverse effect on tips,' said Rebekah Paxton, research director with the Employment Policies Institute. Councilmembers evaluate impact of Initiative 82 on restaurant owners, employees She maintains I-82 has had the opposite effect than intended. 'What we're trying to get at is what is the overall take-home pay workers are getting now versus before hand,' Paxton said. 'The [Bureau of Labor Statistics] takes into account tips, overtime and all of those things and that is the data source that is showing employees are taking home less in tips. Maybe they're getting a higher hourly wage, but overall they're taking home less than before.' People on both sides of the issue said they plan to testify about the proposal to fully repeal I-82 during a public hearing Wednesday. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
3 days ago
- Business
- Yahoo
D.C. Pauses Plans To Hike Minimum Wage for Tipped Workers
Washington, D.C. will pause the implementation of a measure that is set to eliminate the city's tipped wage system, as the yearslong debate over the law's adverse impacts continues to divide the District's left-leaning lawmakers. The D.C. Council on Tuesday voted 8–4 to pump the brakes on Initiative 82, the 2022 ballot referendum that mandated employers pay service workers the full minimum wage, as opposed to the traditional lower base pay that employees supplement with gratuities. (Employers were already required to make up the difference if an employee's take-home pay with tips did not equal the minimum wage.) Initiative 82 requires yearly increases to the city's tipped wage—which was previously $5.35 per hour—until it meets D.C.'s full minimum base pay—set to increase next month to $17.95 per hour—in 2027. July was supposed to see the tipped wage rise from $10 to $12. The Council's vote will delay that increase until October as Mayor Muriel Bowser, a Democrat, advocates for overturning the law entirely. This saga has been ongoing. D.C. voters weighed in on the issue in June 2018 when a majority approved Initiative 77, a ballot referendum that also abolished the tipped wage. But the Council countermanded that in October of that same year by a vote of 8–5, leading to a public outcry from some who said the government was undoing the will of the people. Indeed, the issue has long polarized a city that is dominated by liberal and progressive politics and politicians, some of whom have confronted that good intentions do not equal good outcomes. Restaurants often operate on thin profit margins; many simply cannot afford an explosive increase in labor costs. And a great deal of service workers themselves—who are in an industry that is not exactly known for being conservative politically—opposed the abolition of the tipped wage, knowing it could lead to a drop-off in job opportunities, hours, take-home pay, and viable restaurants. That was the general message Bowser sought to convey in a press conference last month when she announced her FY26 budget would push to overturn Initiative 82. "DC restaurants are facing a perfect storm—from increased operating and supply costs, to higher rents, and unique labor challenges," her presentation said. It also cited an April article in The Washington Post that noted food establishments in the District have been "pushed to the brink." That outcome should not have been a surprise. As I wrote in 2018 after Initiative 77 passed: In the wake of Seattle's 2015 minimum wage hike, the University of Washington conducted a study to explore long-term effects. While the policy is still too young to definitively assess the total impact on restaurants, findings suggest that food-service establishments hit a proverbial fork in the road: switch to a counter-service model or make the place an extravagant dining experience. The former all but eliminates tipping, hampering staff opportunity to maximize income. The latter increases prices drastically for the consumer, turning a casual lunch outing into an elitist affair. Somewhat puzzlingly, it also found that a significant portion of restaurant base wages surpassed $19 an hour, whereas positions paying the minimum plunged. That suggests an unfortunate trend: Many restauranteurs appear to be adapting to the higher wage requirements by prioritizing high-skill employees while kicking low-skill workers to the curb—the very people that Initiative 77 purports to help. Meanwhile, over in San Francisco, researchers from Harvard analyzed the dining scene and found that for every additional dollar added to the tipped wage, there was an additional 14 percent chance that a median rated restaurant (3.5 stars on Yelp) would close. Those aren't great odds for mom-n-pop neighborhood staples—particularly of the hole-in-the-wall variety—many of which are located in the District's low-income areas. Fast-forward to today, and those dire predictions are already becoming reality across D.C., even before the full minimum wage hits restaurants. "We're watching a beloved bar back, a beloved busser, a dishwasher have their jobs taken away," Valerie Graham, a D.C. restaurant worker, told Reason's Justin Zuckerman in his recent documentary about the fight to end the tipped wage. Chef Geoff Tracy, who owns two restaurants in D.C., meanwhile estimated that the law would add $400,000 to his payroll costs each year. There are countless more examples. It is understandably jarring for some to wrap their heads around the fact that many workers would prefer a lower minimum wage. It may not pop on a poster or in a chant at a rally. But economic reality is often more complicated than a protest sign can pithily convey. The post D.C. Pauses Plans To Hike Minimum Wage for Tipped Workers appeared first on
Axios
3 days ago
- Business
- Axios
D.C. Council pauses Initiative 82 tipped wage increase
Arguing that restaurants are facing tough times, the D.C. Council paused the next phase of Initiative 82, weeks ahead of a scheduled rise in the tipped minimum wage. Why it matters: Lawmakers voted 8-4 Tuesday to freeze the wage increase while it considers a full repeal of the law — as sought by Mayor Muriel Bowser and the restaurant industry. State of play: The tipped minimum wage will stay at $10 per hour and not rise to $12 on July 1, as was mandated in the ballot initiative. Council members supporting the pause argued that it does not change the fact that servers, bartenders and other tipped workers are still entitled to the District's full minimum wage. If a worker doesn't receive enough in tips, the business has to pitch in the difference. The city's hourly minimum wage for all workers is scheduled to increase from $17.50 to $17.95 on July 1. Between the lines: Initiative 82 has been controversial at City Hall and in the hospitality world. And with restaurants imposing service fees to help cover costs, it's sparked confusion among diners. But there's been plenty of support at the ballot box: 74% of District voters approved it less than three years ago. A predecessor initiative passed in 2018, but the D.C. Council stopped it from taking effect. This time, council members said they are intervening because of inflation squeezing independent restaurants, diners spending less, and uncertain tariffs. Also on lawmakers' minds: Congress is considering removing federal taxes on tips up to $25,000 for people making $160,000 or less. Several council members said they want to see how that proposal shakes out in the months ahead before moving forward. What they're saying: The three-month pause"allows the council to fully consider the data and the impact on our local restaurant industry," said Council member Kenyan McDuffie, urging colleagues to vote in favor. The other side: "Voters have now passed this twice," Council member Brianne Nadeau said. "A pause is not respecting the will of the voters." Zoom out: Bowser is pushing for a complete repeal through her budget proposal, but there may not be enough support on the council. Council members Christina Henderson and Charles Allen voted for the pause, but said they don't support overturning I-82. Catch up fast: Initiative 82 incrementally increases the base pay for tipped workers until it matches the citywide minimum wage by 2027. Labor advocates say I-82 has led to higher wages and fairer practices. Many businesses argue it's been hugely detrimental. Some hospitality workers say they used to make more money off tips before I-82, and that now customers may be less likely to tip generously because of service fees. Washington's restaurant association wants a repeal to set back the tipped minimum wage to around $5.
