By D. Kevin McNeir
Special to the AFRO
Washington, D.C. Mayor Muriel Bowser recently said Initiative 82, a bill that D.C. voters approved in 2022 to raise minimum wage for tipped workers, would hinder her plan to minimize the city’s dependence on federal dollars.
In an emergency vote on June 3, the D.C. Council decided to pause the latest increase from $10 to $12 which would have taken effect July 1. Initiative 82 would have raised the minimum wage for tipped workers, like restaurant employees or hair stylists, to $17.50 by 2027.
Bowser said in a memo to the Council that repealing the law would “support the ongoing viability of our local restaurants amidst significant economic headwinds.”
Views are mixed on the impact of the pause on local businesses and workers.
The Restaurant Association Metropolitan Washington (RAMW), unabashed critics of the law, said the pause “creates a powerful opportunity for us to look carefully at the data and listen to even more of our workers.”
RAMW President and CEO Shawn Townsend noted that the economy has significantly changed since voters approved the bill in 2022.
“It’s our shared responsibility to consider the world as it is rather than as it was,” Townsend said. “We urge the Council to consider Congress’ bipartisan push to eliminate tax on tips, which offers us an unprecedented double-bottom line—but only if Initiative 82 is repealed.”
But one tipped wage worker, Christopher McLaughlin, a native Washingtonian who works part time as a licensed hair stylist, supports Initiative 82 and hopes the DC Council will follow the wishes of voters.
“Voters have had their say – the D.C. Council should honor our wishes,” the 49-year-old said. “While tips are not mandatory, they do show that our customers appreciate the work we do. As a hair stylist, I have a lot of expenses that I must cover, including renting my booth and supplies. So, tips – that is the extra money we receive through tips – really come in handy. Tips give us that extra financial boost that most of us really need.”
Chaz Ogbu, owner of The Continent, a full-service restaurant that features authentic African cuisine, said he supports any plan that would help him both support his employees and allow him to be profitable.
“We have only been in business for one year and I know it usually takes about three years in the restaurant industry to reach a profit level. So, initiatives led by the city that would help us survive in this uncertain economic environment are welcome,” said Ogbu, 40, a Nigerian native.
Ogbu said he and his partners opened the restaurant because of the absence of an establishment that represented his country’s food and culture.
“Of course, the D.C. government could do more and we’re optimistic that they will,” he said. “Still, the restaurant owners I know agree it’s a tough time for all of us. But for my business, I am just as concerned about securing a profit as I am about providing a fair wage for my more than 40 hardworking employees. We want to be an asset to the community as a meeting place for those who represent the African Diaspora and support our traditions.”
Townsend said it’s imperative that government leaders consider the costs that would be passed on to business owners with policies like Initiative 82.
“Restaurants are closing, one and a half per week on an average, and we need to do something to stop the bleeding,” he said. “We have data which shows the closures of restaurants have increased in part because of Initiative 82. Of course, government cannot control foot traffic or the prices of goods. But they can control policies like Initiative 82, and D.C. government has the power to change that.
“Between April 2023 and September 2024, the Bureau of Labor Statistics showed a loss of 1,700 full-service restaurant jobs that can be attributed to Initiative 82 which incrementally began in 2023. And while we are seeing an increase in new restaurants opening in the region, most of these businesses offer fast casual rather than full service which means they don’t require the same amount of labor.”
