Latest news with #Haikan
Yahoo
03-06-2025
- 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
06-05-2025
- Business
- Yahoo
Initiative 82: Bowser calls for repeal of controversial DC ballot measure
The Brief Bowser proposes repeal of Initiative 82, citing economic concerns. Some restaurant owners blame the policy for closures and financial struggles. Supporters argue the measure was overwhelmingly approved by voters. WASHINGTON - D.C. Mayor Muriel Bowser has announced plans to repeal Initiative 82, the voter-approved measure that gradually increases the minimum wage for tipped workers to match that of non-tipped employees. Bowser seeks Initiative 82 repeal What we know READ MORE: Another DC restaurant closing down, blaming controversial 'Initiative 82' Passed in 2022, the initiative is set to bring tipped workers to the same minimum wage non-tipped workers make — doing so in increments. In D.C., minimum wage is supposed to reach $17.95 hourly wage by July. Under I-82, tipped workers would reach that amount by 2027. However, Bowser argues that shifting economic conditions warrant reconsideration of the policy. "The economy we're dealing with right now, and the environment for restaurants, is vastly different from the economy and conditions restaurants faced when this ballot measure was introduced," Bowser said during her FY2026 budget proposal announcement on Monday. READ MORE: DC Mayor Bowser calls for repeal of controversial Initiative 82 amid restaurant closures Restaurants cite financial strain Some restaurant owners blame Initiative 82 for financial struggles, citing rising costs, decreased foot traffic, and lingering effects of the COVID-19 pandemic. Among them is Haikan, a ramen restaurant that closed on Saturday after 10 years in business. Despite these concerns, many D.C. residents still support the measure. A union rally is planned outside the Wilson Building on Tuesday morning where demonstrators will advocate for keeping Initiative 82, highlighting its overwhelming approval by 73% of voters. READ MORE: DC restaurant 'Sticky Rice' blames Initiative 82 as it prepares to close down The Source Information in this article comes from The Office of the Mayor of D.C. and The Associated Press.
Yahoo
01-05-2025
- Business
- Yahoo
Another DC restaurant closing down, blaming controversial 'Initiative 82'
The Brief Another popular restaurant in D.C. is closing down, saying they've struggled under D.C.'s Initiative 82. The legislation raised the minimum wage for tipped workers from just over $5 an hour to currently $10 an hour. Despite being passed overwhelmingly by D.C. residents, Initiative 82 has been cited by several popular restaurants recently as a factor in their closures. WASHINGTON - Another popular D.C. restaurant just announced its closing, blaming a controversial ballot initiative as one of the reasons. Haikan will have it's last day on Saturday after a decade on V St. in the Shaw neighborhood. The owners told FOX 5 they had no comment beyond the statement posted to their social media, which reads in part, "after almost 10 years in Shaw, we've made the difficult decision to close our beloved Haikan. The challenges of food costs, Initiative 82 and the economic climate in the city brought us to this decision." The backstory Initiative 82 has been cited by several popular restaurants recently as a factor in their closures. The legislation was passed overwhelmingly by D.C. voters — twice 1 a few years ago. It raised the minimum wage for tipped workers from just over $5 an hour to currently $10 an hour. In July, it will increase to $12 an hour and keep increasing until it reaches $17.50 an hour in 2027. The Restaurant Association of Metropolitan Washington has been vocal in its opposition of Initiative 82, even asking D.C. Council to repeal it recently. But when speaking to several council members, it doesn't appear a full repeal would be on the table. Councilmember Anita Bonds told FOX 5 she does not support a repeal, but would potentially consider a freeze - which means keeping the minimum wage at $10 per hour, while they figure out what the best way forward is. READ MORE: DC restaurant 'Sticky Rice' blames Initiative 82 as it prepares to close down Those in favor of I-82 point out that restaurants often close for a variety of reasons and this blame game is simply an easy way out. Local perspective FOX 5 spoke to a server and bartender, Blake Vincent, who is also part of the group One Fair Wage. They helped draft the legislation. Vincent said since last year, his bar has seen a roughly 5 to 10 percent increase in customers and a repeal of I-82 would be horrendous. "That scares me because the people I work with depend on a living wage in order to live, to pay their rent," Vincent said. "We live in D.C. It's very high rent. I'm able to pay my rent because of the wage I make with tips on top of it." One Fair Wage pointed to more than 30 restaurants opening their doors in D.C. since the start of the year, more than a dozen in April alone. PREVIOUS COVERAGE: Here's how Initiative 82 could transform DC's restaurant industry Other residents who spoke with FOX 5 also seemed to support the minimum wage increase. "Anytime you talk about tipping, it's going to be hot topic," said Steven Freeman. "But $5 an hour for people who serve your food and all that, in today's climate, today's economy, that's not enough can't live off of it so you've got to find a balance." "You know, if the food is good, and everything is working well in the restaurant, there's no reason for it shut down," said Matt Zakrzewski. "There's probably a way money can be moved around to pay these people the money they deserve." "I just think that people need to be paid a living wage," said Melissa Bell. "They can't continue to pay what they have paid in the past, everything is going up and it's only fair that you pay your workers enough." What they're saying Below is a statement from the Office of the Deputy Mayor for Planning and Economic Development: "We recognize the challenges that many DC businesses are facing. The District is proud to have robust programs to support local retail businesses, but we also know we must also advance a growth agenda that makes it easier to do business here, particularly in the restaurant industry. We will continue to work with the Council on that agenda and legislative proposals as Mayor Bowser advances her FY26 budget." READ MORE: DC restaurants brace as 'Initiative 82,' eliminating tipped wage system, goes into effect Below is a statement from RAMW President and CEO, Shawn Townsend: "The closure of Haikan, a cherished ramen spot in Shaw, marks yet another significant loss for our city's dining scene. After nearly a decade of serving the community, Haikan's decision to shut its doors underscores the mounting challenges faced by independent restaurants in Washington, D.C. While factors like rising food & rent costs and a shifting economic climate play roles, the impact of Initiative 82 cannot be overlooked. This policy, which eliminates the tip credit, has introduced financial strains that many small businesses find insurmountable. As labor costs escalate, restaurants are forced to make difficult decisions, often resulting in reduced staff hours, increased menu prices, or, as in Haikan's case, complete closure. It's imperative for our city leaders to recognize the unintended consequences of Initiative 82. We urge the D.C. Council to reevaluate this policy and consider measures that support both fair wages for workers and the sustainability of our local businesses. The preservation of D.C.'s unique culinary landscape depends on balanced solutions that address the needs of all stakeholders."
