Impacts of elimination of tip credit in DC debated

Only seven states and one territory require that tipped workers receive the same minimum wage as other workers: Alaska, California, Hawaii, Idaho, Minnesota, Montana, Nevada, Oregon, Washington State, and Guam.  Other states allow what is called a “tip credit” against the minimum wage, i.e., their tips are considered part of their wage for purposes of minimum wage.  Needless to say, the District of Columbia has not been one of those states. However, in June 2018, DC voters passed an initiative raising the minimum wage of tipped workers to $15.  DC is a “tip credit” jurisdiction, which means that employers can apply an employee’s tips, up to a certain maximum amount (and only if the employee actually made that much in tips), to the minimum wage required in DC.  For more on how to calculate a tip credit, click here. However, now the DC Council is considering reversing the measure.  The Council has held heated public hearings on the issue.  Each of the sides debated the expected impact of the measure.  This U.S. Dept. of Labor page summarizes the Minimum Wages for Tipped Employees in each of the states.

About William Adams

Attorney at Norton, Moore, & Adams, LLP.
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