The Impact of Initiative 82
Survey of Restaurants on the Impact of Tip Credit Elimination in the District of Columbia
Initiative 82, also known the “District of Columbia Tip Credit Elimination Act of 2022,” was passed in November 2022 and will go into effect beginning May 1, 2023. Initiative 82 will eliminate the tip credit by increasing the tipped minimum wage every year until 2027. Once finalized, the tipped minimum wage will match the standard minimum wage.
- Seventy percent said they will introduce automatic service charges to customers' bills,
- Forty-six percent said they would introduce other automatic fees for customers (i.e. "Fair Wage" fee),
- Forty-six percent said they would open any future locations in surrounding jurisdictions, such as Maryland or Virginia,
- Thirty-eight percent said they would substitute automation or self-service technology for employee tasks,
- Twenty-five percent said they would change their restaurants' service model to include more quick service or counter service,
- Twenty-two percent said they would adopt a no-tipping required policy, and
- Thirty-one percent said they would have to close one or more locations.