Latest news with #Initiative82
Eater
20 minutes ago
- Business
- Eater
D.C. Council Signs Off on a Tipped-Wage ‘Compromise'
The city's nearly decade-long debate on how to pay tipped restaurant workers came to a head around dinnertime on Monday, July 28, when the D.C. Council narrowly voted (7-5) for a new 'compromise' amendment to keep the tipped wage in place, for now, without stripping Initiative 82 entirely. For Jonathan Nelms, the owner of D.C.'s first Georgian restaurant Supra, 'I-82 has been the biggest contributing factor to our going from being a profitable restaurant to losing money last year.' But proponents of the hotly contested issue say Monday night's move essentially waters down the D.C. voter-approved ballot initiative that was designed to bring the base wage for tipped workers up to the level of the minimum wage by 2027. The newly passed amendment partially repeals Initiative 82, a contentious law in effect since 2023 that would have eventually eliminated the city's 'tipped minimum' wage and would require employers to make up for the rest. If I-82 went on as planned, the tipped minimum wage would have gone up from $10 to $12 on July 1. The D.C. Council paused that increase during an emergency vote in early June. Under the newly passed amendment co-sponsored by councilmembers Christina Henderson and Charles Allen, the current base wage for tipped workers will stay put at $10 until July 2026. After that, it will slowly tick up every two years as a percentage of the regular minimum wage until it reaches 75 percent of the full minimum wage by 2034. There were a number of last-minute amendments on the overall 2026 budget bill, but the partial repeal of pay equity for restaurant workers sparked a chaotic uproar inside the Wilson Building. Those in support of keeping I-82 in its original form swiftly disrupted proceedings with a shouting match, causing Council chair Phil Mendelson to call upon D.C. Protective Services police force to clear protestors from the building and lock down the chambers. Smaller restaurants did not embrace 1-82, and owners came out of the woodwork in full force for a marathon testimony hearing in June that lasted well over eight hours. Eric Heidenberger, whose hospitality group runs of Shaw's Tavern, 801, Prost DC, Madhatter, the Bottom Line, and Vagabond, says I-82 has 'made it near impossible for a small, independent operator to make ends meet,' noting a few of his locations have experienced a 30-percent decline in customer foot traffic since I-82's implementation. American standby Brookland's Finest closed after a decade this spring, in part, due to payroll challenges Initiative 82 presents. Brookland's Finest 'The decline in sales, coupled with a doubled increase in labor costs, has put a significant strain on the viability of our D.C. operations,' he says. If I-82 stayed as is, he anticipated having to close half of his D.C. portfolio. 'Plenty of businesses, both longtime and newly opened, tell me the math just doesn't work, and others say they're simply not going to open up any more restaurants here,' said Allen, ahead of the Monday night vote. 'This [amendment] is a step that we can take that provides several years of stability.' The new law will also require D.C. Council to stay on top of economic trends that affect the restaurant industry, including employment and wages, by conducting a bi-annual study. The polarizing topic has been a hot-potato agenda item for the D.C. Council for three months now. In early May, Mayor Muriel Bowser announced her 2026 budget proposal would include language to repeal I-82, which won by a 74-percent landslide at the D.C. polls in 2022. Supporters believe the measure would reduce restaurants' wage violations and boost pay. Opponents like Restaurant Association Metropolitan Washington argue it hurts independent operators, slashes pay for some servers, and spikes labor costs. Several D.C. restaurants like Sticky Rice, Haikan, and Brookland's Finest cited the existing measure, among other financial hurdles, as part of the cause for their recent closures. Way back in 2018, I-77 – a similar voter-approved ballot initiative that would gradually eliminate the tipped wage – was struck down by D.C. Council. While RAMW still favors a 'full repeal' of I-82, its newly amended language that slows down wage hikes is 'a win for the industry' that addresses the 'need to bring greater balance to a policy that has contributed to record closures and job losses … and provides operators with more clarity and a stronger foundation to plan for the future.' RAMW embarked on a campaign to roll back I-82 in recent months, releasing results from a recent poll of 400 D.C. voters who say Initiative 82 has hurt (46 percent) rather than helped (9 percent) the independent restaurant industry in D.C. 'No one is 100-percent happy here. We want workers to be able to have the annual wage growth and restaurants to be able to have more manageable labor costs, and we think that this strikes the balance,' says Ward 2 councilmember Brooke Pinto, who voted 'yes' on the amendment. Fair Price Fair Wage, an advocacy coalition that includes local restaurant workers' union Unite Here, is furious over I-82's partial repeal. 'How many times do D.C. voters have to approve this before it actually happens?' said One Fair Wage president Saru Jayaraman, in a statement on Monday. 'This isn't just a rollback of wages — it's a rollback of democracy. Councilmembers sided with a corporate lobby that spreads lies and bankrolls influence.' Advocates are now fielding options like ballot referenda to recall efforts and voter education campaigns to reinstate I-82 in full. Ward 4 Councilmember Janeese Lewis George agrees that overturning the will of the voters was not the way to go and says not all restaurant failures can be fully attributed to I-82. 'It is not our job to remove all risk from the restaurant industry,' she says. Other U.S. cities like Chicago are also dealing with impacts of the hotly debated ordinance, and Massachusetts voters recently rejected a tip credit elimination and minimum wage hike law. Jonathan Nelms, owner of Georgian restaurant Supra and longtime D.C. resident, spoke out at the June hearing about the motives behind enforcing I-82. 'Why did the government feel the need to get involved in private enterprise? I don't think you did. I think an out-of-state organization came in and ran these campaigns for deceiving initiatives that have fooled D.C. voters twice,' he says. 'They all failed to understand that we as restaurant owners have to pay the difference, the tip makeup.' D.C. chef Rock Harper, who runs fried chicken joint Queen's Mother, echoed that sentiment as a small business owner who's far from a Stephen Starr. 'I wish I was a part of this 'millionaire class.' I live in a little joint across the bridge. I've worked almost 30 years to try to get my business up and this [I-82] thing is hurting us and not working the way it was intended,' he says. He reveals he lost $40,000 in December, and I-82 was one big factor as to why. The early years of I-82 has also impacted Better Hospitality Group, which runs Boardwalk Bar & Arcade, Easy Company, and Takoda. 'Our longest-standing team members have left the D.C. hospitality market and our current team members are struggling to get by due to decreased tips and the limited number of shifts we have available,' says CEO Ryan Seelbach. 'We're reaching the point of the $35 hamburger. It's not sustainable.' — Andrew Kline, Partner vertias He says I-82 has left owners like himself with three options: decrease staffing levels, on top of raising menu prices or adding service fees to guest checks; or close. Veritas Law co-founder Andrew Kline, who represents many of RAMW's members, also broke down the pitfalls of I-82 during the June hearing. 'You can't triple front-of-house wages without having a replacement source of revenue,' he says. 'The numbers are astronomical. I mean, we're reaching the point of the $35 hamburger. It's not sustainable.' Northern Virginia-based data firm MarginEdge, which represents about 600 small restaurant owners in D.C., tracked a nearly 16-percent average spike in D.C. menu prices from May 2023 (soon after I-82 went into effect) to July 2025. (While MarginEdge can't directly attribute these increases to I-82, it notes that 'prices have risen significantly over that same period.') 'The reality is, there's not a playbook,' says MarginEdge CEO Bo Davis, who also runs local sushi chain Wasabi. 'Prices on menus are going to have to be higher in D.C. than other markets. It's challenging for people to swallow.' The budget will now go to Bowser, and the bill will be sent to President Donald Trump for submission to Congress for final approval. Eater DC All your essential food and restaurant intel delivered to you Email (required) Sign Up By submitting your email, you agree to our Terms and Privacy Notice . This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Yahoo
8 hours ago
- Business
- Yahoo
DC Council votes on changes to Initiative 82
WASHINGTON - The D.C. Council voted on changes to Initiative 82, a controversial piece of legislation that changed how tipped workers were paid. The council vote took time, as members were embroiled in other debates. They eventually decided to essentially water down the current version of the legislation, slowing down and capping the increase to tipped workers' wages. What we know Mayor Bowser proposed repealing Initiative 82 this spring. Supporters of I-82 say any changes would go against the wishes of voters–the measure raised the base wage for tipped workers to $17.95 an hour and restaurants were meant to be responsible for making sure workers earned the new minimum wage if their tips didn't get them there. But the head restaurant association told FOX 5 say the law has confused customers with unclear service, I-82 is causing businesses to close. Local perspective "In the District, we're the highest in the country, I would add. So we're asking council to take a look at Initiative 82 and come up with a measure that works for restaurants and workers alike," said Shawn Townsend, President and CEO of the Restaurant Association of Metropolitan Washington. "We talk to lots of tipped workers and they say their take-home pay is higher and they are making more money as a result of having a higher base wage," said Elizabeth Falcon with D.C. Jobs With Justice. Two weeks ago, Council Chair Phil Mendelson thought he had a compromise proposal which would have scaled back I-82 but not get rid of it all together. But in a surprise move the council voted 7-5 to reject that proposal. Solve the daily Crossword
Yahoo
9 hours ago
- Business
- Yahoo
DC Council passes budget; protestors removed over tipped wage compromise
WASHINGTON () — The D.C. Council approved a nearly $22 billion budget for Fiscal Year 2026 Monday night. About an hour before the final vote, 15 to 20 protesters were kicked out of the D.C. Council Chambers and the Wilson Building for protesting changes to Initiative 82. Chairman Phil Mendelson had them removed because they were being disruptive. 'I don't understand the disruptions because it's as if people think that somehow they will get more support if some disruptive and they scream and swear at anybody,' said Mendelson. 'I just don't understand that…The disruption makes it hard on everyone, the public who's here in the chamber and the public who's watching. We have to stop and wait.' Montgomery County teachers file class action grievance over payroll issues Voters approved Initiative 82 in November 2022 to phase out the tipped minimum wage and align it with the standard minimum wage. Councilmembers Christina Henderson and Charles Allen put forward an amendment they say is a compromise between what some workers want and what some restaurant owners want. 'It's a recognition that another steep increase in labor costs at this moment might change D.C.'s wonderful and overwhelmingly local restaurant industry,' Allen said. 'While it slows implementation down, it continues to close the gap between the tip minimum wage and the full minimum wage. After passing with a vote of 7-5, the tipped wage will increase every two years until it reaches 75% of the full minimum wage by 2034. The current tipped wage of $10 is frozen through the middle of next year. Starting on Jan. 1, 2026, employers have to give detailed breakdowns by source on pay stubs, including a list of bonuses, commissions on sales, service charges, or other sources. Congressional candidates in Virginia's 11th district debate issues ahead of special election Councilmembers Lewis George, Nadeau, Parker and White voted no on the amendment. 'The restaurant industry is an incredibly volatile industry. That has been true before and after I-82. It is a high-risk, high- risk venture, not for the faint of heart,' said Ward 4 Councilmember Janeese Lewis George. 'We need to prioritize helping restaurants adapt rather than continuing to make sacrifices at the expense of the workers who keep this economy strong. It is not within our ability to remove all risk from the restaurant industry.' Initiative 83, which was passed overwhelmingly by voters in November 2024, will introduce ranked-choice voting. However, it is only funded for the upcoming general election, not the primary, after Councilmember Brooke Pinto's amendment failed. Other issues included the Council having to cut $30 million on Monday because D.C.'s chief financial officer said it needed to be set aside for any overspending. Funds are being cut from the pay equity fund, affordable housing trust fund and more. The Council did prioritize the programs that are being cut, setting up plans on how to re-fund them if the money becomes available. Montgomery County council member proposes new bike safety legislation 'We used to lead the nation in terms of access to health care and, that's being rolled back. We're seeing that both on the local level and the national level,' Mendelson said. 'There were a lot of cuts the mayor proposed to environmental programs, I mean, I think it's fair to say devastating the environmental programs and those we were not able to restore, most of them.' Mendelson is pleased that school funding is stable, with more money for education, as well as good funding for public safety. 'There's definitely stuff to be happy about, but there's also stuff that is very worrisome; some structural issues in the funding over the course of the financial plan,' Mendelson said. 'There are a lot of social service programs that were reduced. And how that's going to play out, don't know.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Axios
18 hours ago
- Business
- Axios
D.C. Council waters down I-82, affecting local restaurants
The D.C. Council voted Monday to gut Initiative 82, settling on what lawmakers billed as a compromise between fair-wage advocates and many in the restaurant industry — and sparking intense backlash. Why it matters: The city has struggled with I-82's implementation for years. The new measure aims to balance working wages with business survival — especially for independent D.C. restaurants, which are struggling. Driving the news: Eliminating the tipped minimum wage — as the original ballot measure promised — is off the table. Instead, the I-82 amendment introduced by Council members Christina Henderson and Charles Allen preserves the tipped minimum wage and stretches base wage hikes over the next decade at a fraction of the standard minimum wage (currently $17.95/hour). The measure passed 7-5 during a tense hearing that began with protestor interruptions and ended with a lockdown of council chambers as protestors shouted and banged on doors. 📅 New timeline: Now through July 2026, a $10/hour tipped wage (56% of regular minimum wage). That'll increase every two years, capping off at 75% of the minimum wage in 2034. Catch up quick: The hospitality industry struggled to adjust to I-82. Many cited skyrocketing labor costs that coincided with inflation, rising rents and plummeting patronage due to mass DMV layoffs. Workers complained of diminished tips, especially as businesses implemented service fees to cover costs. Meanwhile, the city has been inconsistent with I-82's rollout. Mayor Muriel Bowser recently pushed for a full repeal, which the council voted down. Friction point: Tempers in the council chambers ran high as I-82 supporters chanted, "Blood is on your hands." After the vote, the Restaurant Association of Metropolitan Washington hailed the decision as a "win for the industry," one that "brings immediate relief to operators" in a statement sent to Axios. One Fair Wage, the primary lobby behind I-82, called it a "betrayal of democracy and a gift to the restaurant lobby" in another statement. Meanwhile, there was concern over going against voters' will. "The voters told us what they wanted. And this is not it," said Council member Brianne Nadeau, who voted against the amendment. "This council should stop telling voters they don't know what's best." How they voted: ✔️ For the amendment: Charles Allen, Christina Henderson, Brooke Pinto, Phil Mendelson, Kenyan McDuffie, Wendell Felder, Anita Bonds ❌ Against: Brianne Nadeau, Janeese Lewis George, Robert White, Matt Frumin, Zachary Parker What's next: The amendment aims to provide more wage transparency. Starting in 2026, pay stubs must list all sources — including tips, bonuses, service charges, etc.
Yahoo
4 days ago
- Business
- Yahoo
DC restaurants shutting down at record rates, new report shows
The Brief A new report says hundreds of jobs are being lost as restaurants shut down at record levels in D.C. Many restaurant owners blame the controversial Initiative 82 policy. The law is meant to phase out the "tip wage" system, where workers earn a lower than the base minimum wage. WASHINGTON - A new report says 900 jobs are being lost as D.C. restaurants shut down at record rates. At this time, may D.C. restaurants are pointing the finger at a controversial measure concerning tipped workers. By the numbers Across the District, two restaurants per week are reportedly closing down for good. This comes as the D.C. council prepares to take up the controversial Initiative 82. The Restaurant Association of Metropolitan Washington says the latest data shows new restaurant openings are down 17% compared to this time last year. The troubling trends come as a jobs report reveals a reported net industry loss. Dig deeper FOX 5 has learned the new mid-year data from the Restaurant Association of Metropolitan Washington indicates that D.C. is losing restaurants at an historic rate, reportedly averaging two closures per week so far this year. More than 50 restaurants have apparently closed in the first half of this year. That's reportedly nearly double compared to the same timeframe last year. The Restaurant Association of Metropolitan Washington believes the rapid and record-breaking restaurant closures are due to increased operating costs and the minimum tipped wage increase with the phased implementation of Initiative 82. What they're saying Patrons we spoke with described the situation as saddening and pointed out that the District is an area that thrives on the food and hospitality industries. The Restaurant Association of Metropolitan Washington says it's watching closely as the DC Council prepares to take up Initiative 82 on Monday. The District is apparently on pace to exceed 100 closures by the end of the year, surpassing the 2024 record of 73. Solve the daily Crossword
