WASHINGTON — D.C. voters overwhelmingly approved a measure to give tipped workers a living wage. Initiative 82 means people like waiters and nail techs who make a base salary of around $5 an hour will be paid the full minimum wage – without relying on tips.
This is the second time D.C. voters decided to give tipped workers a pay raise. Even though the D.C. Council overturned that initiative in 2018, the owners of 2 Amy’s Pizzeria on Macomb Street, NW knew it was just a matter of time, so they changed their pay structure years ago.
You may appreciate your service at 2 Amy’s, but you don’t have to leave a tip.
“We do not have a tip line on our credit card receipts and we don’t encourage anyone to leave a tip, but if someone leaves $10 on the table, we divide it evenly among all the employees no matter what they do here,” said co-owner Peter Pastan.
For the past two years, the restaurant’s 38 employees have paid time off and 90% of their health insurance is covered by their employer. Pastan said they made the move in 2020 and admits it was a bit scary at first, but since the pandemic, they’ve learned they survived worse.
“The way I see it, it’s actually more supportive of our staff, if it’s a slow day, you still know you’re going to make a decent wage,” he said.
Mayor Muriel Bowser believes there must be a public information campaign and ongoing conversations with restaurateurs.
“We have to listen to industry figure out how they are approaching it and I don’t think there’s one single way they’re approaching it,” said Bowser.
Pastan offered that it’s a matter of math. While some restaurant owners may pass on a service fee to diners, Pastan has increased menu prices by 30% to make up the difference. It’s an added cost he said customers don’t mind paying once they realize employees are still getting a living wage – whether they tip at all.
“You lose the FICA tax credit and that’s painful,” added Pastan, “but I think that’s the reality of it as well. I mean, people work for you, and they should be supported and taken care of, and you shouldn’t have to depend on the kindness of strangers to make that happen for them.”
Initiative 82 doesn’t affect 2 Amy’s because their employees are making a living wage, but tipped wage workers making $5.35 an hour will receive an increase of up to $2 until the hourly salary reaches the minimum wage of $16.10 by 2027.
WUSA9 reached out to Council Chairman Phil Mendelson who led the charge to overturn the initiative in 2018.
A spokesperson said, “he does not have any intention of introducing legislation that would change the certified result of the vote.”