Latest news with #Initiative82
Washington Post
5 days ago
- Business
- Washington Post
Eliminating the tipped minimum wage was a mistake. Repeal Initiative 82.
One can sympathize with D.C. residents who, in 2022, overwhelmingly voted to eliminate the tipped minimum wage in the city. Proponents sold the measure — known as Initiative 82, which passed with nearly 74 percent of the vote — as a policy to guarantee restaurant servers a 'living wage.' Instead, it is proving to be an economic disaster. With restaurants closing, laying off workers or warning that they are on the verge of financial ruin because of rising payroll costs, the D.C. Council voted 8-4 on Tuesday to pause minimum-wage increases for tipped workers, which have been rolling out in phases since May 2023. The next raise, to $12, was slated for July. Pausing the policy was the right call. Now, the council should take the next step and repeal it entirely, as D.C. Mayor Muriel E. Bowser (D) proposed in her 2026 budget. D.C. lawmakers should rarely overturn voter-approved policies. Should a repeal pass, it would be the second time the council overturned the will of voters on the issue, having repealed a measure that passed in 2018 with 56 percent of the vote. The council's vote on Tuesday provoked intense backlash from activists, who disrupted the meeting multiple times with booing and yelling. One declared the decision a 'betrayal' of service workers. Council member Brianne K. Nadeau (D-Ward-1) stressed that D.C. residents were 'counting on' the raise. Yet Initiative 82 is a case study example of when council action is justified — indeed, essential, if the D.C. hospitality industry is to survive. The argument that District restaurant employees failed to receive livable wages was never accurate. Nor is it true that eliminating tipped wages would make servers more financially stable. Before the initiative went into effect, the minimum wage for tipped workers was set at $5.35 an hour, with tips covering the rest of their income to reach the city's standard minimum wage, which is now $17.50. If that didn't happen, employers were legally required to make up the difference. Some servers now complain that the initiative has resulted in them making less money because many customers now pay less in tips. And that's if they're eating at D.C. restaurants at all. Many restaurants are adding irritating service charges to cover the higher payrolls costs, which has pushed fed-up diners to competitors outside the city. Most restaurants — especially smaller ones — operate on thin margins, so multiple increases in pay for their staff within a short period can be toxic. Initiative 82 it hitting them as other economic factors bite into their business: inflation, tariffs and a sagging regional economy due to widespread job losses among federal workers. Proponents of the initiative often point out that the number of D.C. employees working at restaurants has grown since the policy took effect, according to data from the Bureau of Labor Statistics. But many factors can affect job numbers, including the industry's long-term recovery from the pandemic — which might have been more robust without Initiative 82. In fact, the data suggests that job growth in full-service restaurants slowed significantly in the District as soon as the policy was implemented. That fact should make all elected officials uneasy. Beset by new economic challenges, the city needs a pro-growth agenda. A haphazard attempt to restructure how restaurants have long done business is the opposite of that.
Yahoo
5 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
6 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
6 days ago
- Business
- Yahoo
Complaint: Nonprofit calls for ethics investigation into DC Mayor Muriel Bowser, staff
WASHINGTON () — A watchdog nonprofit organization filed a complaint on Tuesday, calling for an investigation into D.C. Mayor Muriel Bowser to determine if she accepted illegal gifts. The Foundation for Accountability and Civic Trust (FACT) filed the with the (BEGA) against the mayor and four of her staffers for trips she has taken, alleging the mayor's office has provided false information or not answered questions posed by the public and the press. According to the complaint, Bowser and four staffers traveled to Doha, Qatar, for the 2023 United Nations Climate Change Conference in Dubai. DC Council votes to pause July 1 wage bump under Initiative 82 'Although it must be disclosed in order to be a legal donation to the District, there was no record of who paid for the trip (with the exception of a $3,500 receipt submitted by Mayor Bowser's Chief of Staff for a three-night taxpayer-funded stay at the Atlantis-Palm Hotel in Dubai),' the complaint read. The mayor's office initially said the trip was paid for by the D.C. Chamber of Commerce — which the Chamber said was not true. Then, officials said the trip was paid for by the U.S. Conference of Mayors. That was also false, FACT claimed. In February of this year, FACT says the mayor's office sent a letter to Qatar 'because it was Qatar that had actually paid for the trip.' The letter asked for a breakdown and value of expenses, describing the payments as an 'in-kind donation' and requested a donation agreement for the trip, even though it happened in 2023. DC mayor concerned about parade tanks' impact on streets FACT said it wasn't until a reporter filed a Freedom of Information Act (FOIA) request in March 2025 that this information was publicly revealed, showing that Qatar paid nearly $62,000 for the trip. 'As of May 2025, the District still does not have a record of Qatar paying for Bowser's 2023 trip,' the complaint continues. In addition to their Qatar excursion, Bowser has taken other trips which have gone unreported — such as to the Masters Golf Tournament, Las Vegas, Miami and Mar-a-Lago, FACT alleged. 'The Mayor's unwillingness to provide basic information about numerous high-profile trips is unacceptable. It is not simply the Qatar trip, but a troubling pattern from Mar-A-Lago to Doha to Augusta National–the District has no record of who paid for these trips or what public purpose they served, if there was one at all,' Kendra Arnold, Executive Director of FACT, said in part. According to , D.C. employees 'may not, directly or indirectly, solicit or accept a gift from a prohibited source; or given because of the employee's official position or duties.' Confusion, concern around Dupont Circle ahead of big WorldPride weekend Gifts are defined by BEGA as any gratuity, favor, discount, entertainment, loan or any item of monetary value. Such includes services, as well as transportation, local travel, lodging and meals, whether provided by purchase of a ticket, advance payment or reimbursement after the expense has been incurred. The also said that government employees must keep 'accurate and detailed records of the acceptance and use of any gift or donation … and shall make such records available for audit and public inspection.' 'Clearly Mayor Bowser's trip to Qatar qualifies as a gift, and one that elected officials arepersonally prohibited from accepting. Additionally, this gift would not qualify as a donationmade to the District because the donation was not recorded and approved before the donationwas used,' FACT's complaint alleges. 'The District still does not even have a record of it.' 'The ethics rules exist to protect against corruption and when they are ignored, the public's trust erodes. I urge the Board to investigate and enforce the law without delay,' Arnold continued in her statement. DC News Now reached out to the Mayor's Office for comment but did not hear back in time for publication. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
6 days ago
- Business
- Yahoo
25K+ DC residents could lose Medicaid. Now what? Here's what you can do.
WASHINGTON (DC News Now) — Mayor Muriel Bowser's proposed budget for Fiscal Year 2026 would leave more than 25,000 D.C. residents without health insurance due to Medicaid cuts. On May 2, the Bowser Administration urged Congress to maintain the District's Federal Medical Assistance Percentage, saying that changes will have severe impacts on the city's entire health care system. DC Council votes to pause July 1 wage bump under Initiative 82 Twenty days later, on May 27, cuts to Medicaid were announced during her budget presentation, with more than 25,000 residents expected to be impacted. Adults without children and adult caregivers between 138%-200% of the federal poverty level would be moved to D.C. Health Benefits Exchange, according to the mayor's presentation. The D.C. Health Benefits Exchange is expected to help around 90% of those losing access to Medicaid under the proposed eligibility changes, said Wayne Turnage, D.C. deputy mayor of health and human services. 'It won't be precisely the same benefits structure, but it will be very close,' Turnage said. See full interview with Turnage below: The Basic Health Plan is being developed by the Executive Director of the DC Health Benefit Exchange Authority, Mila Kofman, in order to serve those individuals. Those eligible for the exchange program will need to apply once the program is fully up and ready in order to receive those benefits. DC police recinds request to close Dupont Circle park during WorldPride after pushback from DC community For the other 10% not covered by the program being developed, you may need to consider health insurance. Shadow Rep. Oye Owolewa (D) said these changes could potentially lead to a health care 'crisis' in the District, but he plans to take every step to ensure residents are prepared. 'As a pharmacist, an elected official, Ward 8 resident, we are reaching out to all of our residents who take or use D.C. Medicaid,' Owolewa said. 'We are trying to find them alternative strategies to get health care. We are also going to be doing a lot of men's health round tables to make sure folks who are using D.C. Medicaid, or folks who are 21 years or older, know how to get their health insurance.' Many who lose access to Medicaid may need to rely on hospitals and clinics that offer uncompensated care, said Zach Gaumer, managing principle of Health Management Associates' Washington, D.C. office. The company specializes in Medicaid and Medicare policy consulting for providers, payers, etc. 'Medicaid is often thought of as the insurance of last resort for low-income individuals,' Gaumer said. 'In a lot of cases, what happens to individuals when they lose Medicaid coverage is that they go uninsured. They have to turn to sources of care that are uncompensated.' Residents may also be able to go directly to their providers for additional resources and help on where they can get care at a reduced price or even at no cost, Gaumer said. Health care prices are the number one reason people go uninsured, he added. 'It's very expensive to insure individuals at this point in time, and it can be thousands of dollars a month to buy insurance,' Gaumer said. Republicans eye cuts to Medicaid If you become ineligible for Medicaid, there are still ways to have lower health insurance plans and pay less for premiums. The Health Insurance Marketplace allows low-income families to explore health care plans that are tailored to their income. Affordable Care Act (ACA) Health Insurance Benefits and Coverage, also known as 'Obamacare,' matches individuals with health care plans with the goal of being affordable. This is offered by private health insurance companies rather than through the federal government. Register here. DC Health Link offers users the option to compare plans to see if they qualify for lower monthly premiums. To assist with premiums, the Internal Revenue Service (IRS) offers tax credits to help cover premiums. It's a refundable tax credit for eligible individuals and families to cover premiums purchased through the Health Insurance Marketplace. To get this credit, you must meet certain requirements and file a tax return with Form 8962, Premium Tax Credit (PTC). This includes not being eligible for Medicare. Click here for full eligibility requirements. Fredericksburg mother voice fears about potential Medicaid cuts D.C. Exchange has a hotline of (855) 532-5465 that's available Monday through Friday to assist with questions. PAN Foundation The organization helps with health insurance premium grants for patients being treated for various disease states. U.S. Citizenship is not a requirement, and you must have an income that falls at or below 500% of the Federal Poverty Level. The grant can help cover a portion of the premium costs for the following diseases: Fabry disease premium Hemolytic uremic syndrome premium Hemophilia premium Hypophosphatasia premium Inherited retinal disease premium Lysosomal acid lipase deficiency premium Myasthenia gravis premium Neurofibromatosis premium Paroxysmal nocturnal hemoglobinuria premium Pompe disease premium Short bowel syndrome premium Additional programs can help with prescription costs, HIV/AIDS treatment and more. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
