Latest news with #I-82
Yahoo
6 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
7 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.
Axios
7 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.
Yahoo
06-05-2025
- Business
- Yahoo
Hospitality workers rally in DC to save Initiative 82
WASHINGTON (DC News Now) — Nearly a hundred union workers across the hospitality and trade industries gathered on the steps of the Wilson Building on Tuesday morning, calling on the D.C. Council to stop Mayor Muriel Bowser from repealing Initiative 82. The measure gradually raises the minimum wage for tipped workers to be on par with everyone else in D.C., which is currently $17.50. Ellery Grimm works at St. Anselm's. She told DC News Now that, as a busser, she doesn't make as much as servers and bartenders because she only receives a percentage of the tip pool. 'As a busser, I am a wage worker, and so, I am looking forward to– I am actually relying on this wage increase that's coming in July,' Grimm said. 'I'm really encouraging the mayor and the Councilmembers not to go ahead with repealing Initiative 82. This is something that the residents of D.C. voted on twice.' The workers also urge the Council not to approve the mayor's multi-billion-dollar plan to build a new football stadium unless there's a firm commitment to 'high-quality hospitality jobs.' Bowser announced the plan to repeal I-82 as part of her 2026 budget proposal during a press conference Monday. In a show of solidarity with the workers, Councilmember Brianne Nadeau (D-Ward 1) told the crowd, 'We're going to work together to get enough Councilmembers to block this repeal.' PREVIOUS COVERAGE | Bowser proposes repealing Initiative 82 in upcoming budget However, Bowser has said the repeal is necessary because the economic landscape in which restaurants operate is vastly different from three years ago, when the initiative passed. The economic changes come as D.C. could lose 40,000 federal jobs due to the Trump administration's cuts to the federal workforce. Restaurant owners have blamed the measure for increased operating costs, which have forced some places to shut down. However, Paul Schwalb of UNITE HERE Local 25 said getting rid of I-82 is the wrong solution. 'Look, we believe that cutting wages for workers is always a bad idea,' said Schwalb. 'If we need to help the restaurant industry, we should do it, but we should also recognize that there are lots of restaurants that are thriving.' Repealing Initiative 82 will require D.C. Council approval. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to DC News Now | DC, Virginia, Maryland News, Weather, Traffic, Sports Live.
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.
