On June 19, District of Columbia voters (at least those who care to exercise the right on the day of a primary election that is almost always characterized by low turnout) will weigh in on Initiative 77. This ballot question, if passed, would eliminate the tip credit for servers and bartenders in D.C. Under this credit, a different minimum wage applies to tipped workers, since they earn most of their money from tips — usually significantly more than the minimum wage. In the unlikely event that that does not happen, their employer is legally required to cover the difference, ensuring that they still earn the regular minimum wage.
The minimum wage in D.C. is currently $12.50 an hour, which is 72 percent higher than the mandated federal minimum wage of $7.25. By 2020, the D.C. minimum wage will rise to $15 an hour. For tipped workers, like waiters and bartenders, the minimum wage is $3.33 an hour, rising to $5 by 2020. This practice is fairly standard throughout the country, and works well for all involved. Waiters are incentivized to provide the best possible service, diners can reward good service, and restaurants and bars ensure their employees make at least the minimum wage while maintaining a competitive edge.
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