New DC law takes effect July 1, 2025

DC's tipped wage increase puts strain on some restaurants

The D.C. Council heard from dozens of restaurant owners and workers Wednesday about issues with the higher minimum wage for tipped workers that’s been in effect for the past two years. Restaurants are warning that the price of a meal out could soon get even more expensive. FOX 5’s Shirin Rajaee joins us live from Georgetown with more on D.C.’s restaurant scene.

WASHINGTON - Two new laws regarding the minimum wage were set to go into effect in the District on July 1, 2025 – but one has been put on hold.

Minimum wage increase for non-tipped workers in DC

The minimum wage in D.C. for non-tipped workers is on the rise. The increase will go from $17.50 an hour up to $17.95 an hour, effective starting July 1, 2025. 

This will be for all non-tipped employees, regardless of the size of the employer.  

Minimum wage increase for tipped workers paused

The base minimum wage for tipped employees was supposed to see a bit larger of an increase, up to $12 an hour from the previous $10 an hour, effective July 1, 2025. 

But last month, D.C. Council voted to pause the $2 increase for tipped workers. The increase was part of Initiative 82, passed in 2022 with nearly 75% of voters supporting it. 

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Why the pause? The Restaurant Association of Metropolitan Washington says it's hurting the industry. 

"I came here to serve the people, and I’m hearing from a lot of restaurant workers that they’re losing wages under I-82. Some are gaining wages — but many, it seems the majority, are losing. We’re also seeing a lot of our smaller restaurants close," said Councilmember Robert White, who voted for the pause. 

But critics say that pausing the increase is D.C. Council repealing the will of the voters. 

"We just heard Council say Initiative 82 is not fair to restaurant owners and operators, so what I'm asking for is how is pausing this initiative fair to workers? How is pausing an initiative that's been voted on twice by D.C. voters fair to D.C. consumers?" said Nikki, a a tipped worker for the past decade, to FOX 5 DC in June.