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.

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