Employers in the District of Columbia (DC) have a few more months before the tipped minimum wage increases from $5.35 to $6.00 per hour.
Initiative 82, a ballot measure passed in November 2022, was set to take effect on January 1, 2023, but was delayed because it still needed congressional approval. The delay prompted the DC Council to pass emergency legislation that postpones increasing the tipped wage until May 2023.
The Future of DC's Tipped Minimum Wage
On November 8, 2022, DC approved Initiative 82, a ballot measure that repeals the tipped employee minimum wage. As a result, the minimum wage for tipped employees (also known as the cash wage) will gradually increase until it matches the district’s minimum wage rate on July 1, 2027. The district’s current minimum wage rate is $16.10 per hour.
Scheduled Tipped Minimum Wage Increases
The cash wage for tipped employees in DC has been adjusted annually to reflect the cost of inflation. The current cash wage is $5.35 per hour. However, this wage is set to increase as follows:
- May 1, 2023 - $6 per hour.
- July 1, 2023 - $8 per hour.
- July 1, 2024 - $10 per hour.
- July 1, 2025 - $12 per hour.
- July 1, 2026 - $14 per hour.
- July 1, 2027 - the cash wage will increase to match the district’s minimum wage rate
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