In a press conference this week to unveil her new budget proposal, D.C. Mayor Muriel Bowser called for a full repeal of the city’s tip credit elimination law, Initiative 82.
In the presentation, the mayor called on facts, data, and restaurant experiences to explain how repealing the law would remove barriers to business growth in the District, and contribute to “A Stronger DC.”
Bowser rightly noted: “DC restaurants are facing a perfect storm,” specifically citing labor cost challenges presented by Initiative 82.
The best-available data from the federal Bureau of Labor Statistics supports this claim: The best available federal data that covers most employees on the ground shows that D.C. restaurants and bars have lost over 1,700 jobs in the industry since Initiative 82 began in May 2023. That is more than 5% employment loss for the industry, a distinct trend from the rest of the District of Columbia’s industries, which gained jobs over the same period.
Bowser’s presentation included this data:
Bowser also mentioned repealing Initiative 82 would “bring [DC’s] policies in line with the region.”
Data also supports this move – as Maryland and Virginia maintain robust tip credits, DC’s restaurant losses are unique to the city under the new tip credit elimination law beginning in May 2023. In the year following Initiative 82’s implementation, DC’s restaurant losses were more than 5 times greater than the surrounding Maryland and Virginia region. This is a significantly stark trend: DC restaurant employment was growing at more than double the rate of the surrounding region before Initiative 82.
Bowser’s call for repeal echoes the long-standing cries for relief from D.C.’s local restaurants and tipped workers.
Starting even before the law went into effect, local restauranteurs reported they would be forced to raise prices, add service charges, downsize staff, or change their service model to survive.
Since then, DC has been hit with a rising rate of restaurant closures since the law went into effect. In 2024, the number of closures (73) was the highest rate since the pandemic. Even more have closed in 2025, directly citing Initiative 82 as the cause.
Tipped workers themselves have been lamenting the adverse impacts of Initiative 82 on their jobs and income.
In a six-hour hearing held by city Councilmember Anita Bonds, dozens of tipped workers testified that the law has slashed their tips and take-home pay and hurt the restaurants they work in. Workers reported they made up to 50% less than they did before Initiative 82, and even mentioned moving across city limits to work in states with better tip credit laws.
A recent snapshot of local tipped workers’ experiences under Initiative 82 found 79% have earned less in tips this year than they did last year. Many attributed the lower tips to hours reductions, layoffs, reduced customer traffic, and higher menu prices scaring off customers.
The evidence that Initiative 82 has caused years of hardship for restaurants and workers is insurmountable. Mayor Bowser chose to stand with these facts to protect local restaurants and tipped workers.