KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to District of Columbia

PR26-0217 • 2025

Tipped Minimum Wage Increase Clarification Emergency Declaration Resolution of 2025

Tipped Minimum Wage Increase Clarification Emergency Declaration Resolution of 2025

Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
McDuffie
Last action
2025-06-13
Official status
Approved
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on how the resolution addresses federal tax treatment of tips or provides clarity beyond pausing the wage increase.

Clarifying Tipped Minimum Wage Increase

This resolution declares an emergency to pause the increase in tipped minimum wage scheduled for July 1, 2025.

What This Bill Does

  • Declares that there is an emergency situation regarding the need to amend the current law on tipped minimum wages.
  • Pauses the next increase in the tipped minimum wage from $12.00 per hour until further notice.

Who It Names or Affects

  • Restaurant operators and other employers who pay tipped employees.
  • Tipped workers in the District of Columbia.

Terms To Know

Emergency Declaration
A statement by a government body that declares an urgent situation requiring immediate action.
Minimum Wage Act Revision Act
The law that sets the minimum wage requirements for workers in the District of Columbia, including tipped employees.

Limits and Unknowns

  • It does not specify when the paused increase will resume.
  • Only affects businesses and workers within the District of Columbia.

Bill History

  1. 2025-06-13 Council of the District of Columbia LIMS

    Resolution R26-0134, Effective from Jun 03, 2025 Published in DC Register Vol 72 and Page 006620

  2. 2025-06-03 Council of the District of Columbia LIMS

    Retained by the Council

  3. 2025-06-03 Council of the District of Columbia LIMS

    Legislative Meeting

  4. 2025-06-03 Council of the District of Columbia LIMS

    Approved with Resolution Number R26-0134

  5. 2025-06-02 Council of the District of Columbia LIMS

    PR26-0217 Introduced by Councilmember McDuffie at Office of the Secretary

Official Summary Text

Tipped Minimum Wage Increase Clarification Emergency Declaration Resolution of 2025

Current Bill Text

Read the full stored bill text 
ENROLLED ORIGINAL

1

A RESOLUTION

26-134

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

June 3, 2025

To declare the existence of an emergency with respect to the need to amend the Minimum Wage
Act Revision Act of 1992 to pause the date on which the next increase to the tipped
minimum wage takes effect on July 1, 2025.

RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited as the “Tipped Minimum Wage Increase Clarification Emergency
Declaration Resolution of 2025”.

Sec. 2. (a) On November 30, 2022, the District of Columbia Board of Elections certified
the election results for Initiative Measure No. 82 (“Initiative 82”), the District of Columbia Tip
Credit Elimination Act of 2022, effective February 23, 2023 (D.C. Law 24-281; 70 DCR 2953).
(b) This law gradually increases the tipped minimum wage until tipped wage employees
earn the minimum hourly wage by July 1, 2027. As a result, the tipped minimum wage is
required to be at least $12.00 per hour beginning on July 1, 2025.
(c) On May 5, 2025, the Mayor announced that her Fiscal Year 2026 budget proposal will
include the repeal of Initiative 82. Since that time, the Committee on Business and Economic
Development has received questions and comments from several restaurant operators who
expressed confusion about whether the next statutory increase to the tipped minimum wage on
July 1, 2025, would still take effect given the news of the proposed repeal.
(d) Additionally, on May 20, 2025, the Senate unanimously passed the “No Tax on Tips
Act”, which, among other things, would establish a new tax deduction of up to $25,000 for cash
tips of employees who make under $160,000 in 2025 and adjusted annually for inflation. On
May 22, 2025, a time-limited “No Tax on Tips” provision was included in the reconciliation bill
passed by the House.
(e) To provide clarity to our local businesses and give the Council time to fully consider
the Executive’s budget proposal and evaluate a seemingly imminent change in the tax treatment
of tips at the federal level, it is imperative that legislation pausing the July 1, 2025 tipped
minimum wage increase take effect immediately.

Sec. 3. The Council of the District of Columbia determines that the circumstances
enumerated in section 2 constitute emergency circumstances making it necessary that the Tipped
ENROLLED ORIGINAL

2

Minimum Wage Increase Clarification Emergency Amendment Act of 2025 be adopted after a
single reading.

Sec. 4. This resolution shall take effect immediately.