D.C. Mayor Muriel Bowser is proposing the repeal of Initiative 82, the voter-approved measure altering the wage system for restaurant workers. The move comes as several establishments across the city have closed, with some owners citing the initiative as a contributing factor.
The proposal is part of the Mayor’s planned budget for 2026. It aims to restore the previous system where tipped employees received a lower base wage supplemented by customer tips.
Initiative 82, which passed in 2022, mandated that bars and restaurants pay tipped staff the full city minimum wage, eliminating the traditional tipped wage scale. The change was phased in, requiring increases over several years.
Supporters of the initiative argued it would provide a more stable income for service workers. However, critics contended it increased labor costs for businesses, leading to negative consequences for both employers and employees.
Recent restaurant closures have fueled debate over the initiative's impact. Popular spots like Haikan and Sticky Rice DC have closed their doors, with owners citing factors including the new wage requirements.
"DC restaurants are facing a perfect storm – from increased operating and supply costs to higher rents and unique labor challenges," Mayor Muriel Bowser said in a statement. "DC must rebalance our system to ensure local restaurants can survive, compete, and employ DC residents."
Bowser's plan also includes proposed sales tax holidays for restaurants on specific dates in 2025 and 2026.
Employment Policies Institute research director Rebekah Paxton supported the Mayor's proposal. Paxton argued that Initiative 82 resulted in "fewer tips, lost jobs, and closed restaurants." Initiative 82 passed after voters approved the measure.
The proposal to repeal the initiative is expected to face discussion as the city council reviews the budget plan.