Employers of tipped workers in Washington, D.C. may soon face a
tipping point of their own as the result of a voter initiative just
approved by voters. If the law takes effect, the minimum rate of
pay for such workers will steadily increase for at least the next
eight years. However, before the wage hike takes effect, either
Congress or the D.C. Council could take action to prevent the
increase from taking effect, so employers should stay aware of
developments to determine their future obligations.
Vote Is In: Wage Hike Approved
It's no secret that, on an hourly basis, tipped workers are
permitted to be paid less per hour by their employers in many
jurisdictions across the country. The theory behind this disparity
is that customer tips and gratuities will more than make up the
difference between their hourly wage and the minimum wage. At the
same time, it's no secret that the hospitality industry
operates on razor-thin margins, and is often the first to feel