In January, PayrollOrg attended a hearing held by the Council of the District of Columbia’s Committee on Executive Administration and Labor regarding tipped wages and tip credit elimination in D.C. A tip credit allows employers to use tips to boost workers’ earnings above the minimum wage, but they have to make up the difference if tips do not bring workers’ pay to the required level.
Following the hearing, PayrollOrg’s Government Relations Task Force State and Local Topics Subcommittee and Strategic Payroll Leadership Task Force – Hospitality Industry commented about a possible delay in implementing the voter-backed Initiative 82, District of Columbia Tip Credit Elimination Act of 2022, which phases out the tip credit.
In its letter to the Council, PayrollOrg said that a possible delay in full implementation of Initiative 82 would help payroll processers to accommodate the changes.
Initiative 82 was a ballot initiative aimed to gradually eliminate the tipped minimum wage in D.C. Under this measure, tipped workers, such as restaurant servers and bartenders, would transition to earning the standard minimum wage by July 1, 2027, rather than relying on tips to supplement a lower base wage.
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Alice P. Jacobsohn, Esq., is Director of Government Relations for PayrollOrg.
