Washington, D.C., Minimum Wage Update

Washington, D.C., has delayed the effective date of its minimum wage for tipped employees.

It increases to $6, effective May 1, 2023.

The tipped minimum wage in D.C. was initially set to increase at the beginning of 2023. But it was pushed back due to a congressional review delay.

Minimum Wage Management. Simplified.

Washington, D.C., Minimum Wage Update

All bills that the D.C. Council passes go to Congress for a 30-day review (or 60 days for laws relating to crime). And because of the delay in selecting a new Speaker of the House, it muddled the action from the D.C. Council, which passed the tipped minimum wage measure in November 2022.

Due to the situation, district leaders opted to delay the increase to the tipped minimum wage to May 1, 2023. (As of this writing, the tipped minimum wage in D.C. is $5.35.)

Meanwhile, the District of Columbia has also announced its indexed rate, which goes into effect July 1, 2023. At that time, it will increase to $17, up from $16.10 currently.

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Managing Minimum Wage Rates

The minimum wage news out of Washington, D.C., underscores the challenges of managing minimum wage rates.

In addition to the congressional oversight rule, the district has its standard rate and tipped employee rate updating at different times of the year, which is rare.

Most employers know that Jan. 1 and July 1 each year are hot times for new minimum wage rates, but many jurisdictions don’t follow that general timeframe. In Connecticut, for example, recent increases were scheduled for:

• Sept. 1 – 2020
• Aug. 1 – 2021
• July 1 – 2022
• June 1 – 2023

In addition, there has been a shift in recent years from scheduled increases to those based on the applicable Consumer Price Index, further complicating the tracking and applying of minimum wage rates for employers that operate across the country. Among the challenges:

• Tipped rates, especially in places like Hawaii
• Indexed rates
• Special rates for certain industries like hotel workers or employees working in healthcare in California
• Legislative action
• Ballot initiatives
• Federal contractor status

It is paramount for employers to continually monitor new and changing minimum wage laws.

Minimum Wage Glossary

Conclusion

The Washington, D.C., minimum wage update should provide some clarity for employers moving forward.

As a reminder, the next minimum wage increases for the District of Columbia are:

• Tipped rate: $6, effective May 1, 2023
• Standard rate: $17, effective July 1, 2023

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.