- D.C. Council Announces Likely Minimum Wage Increase Beginning 2017
- September 12, 2016 | Authors: Meredith Merry Campbell; Joy C. Einstein; Gregory D. Grant
- Law Firm: Shulman, Rogers, Gandal, Pordy & Ecker, P.A. - Potomac Office
Earlier this month, the D.C. Council agreed to raise the city’s hourly minimum wage from $10.50 to $15.00 by July 2020. The current D.C. minimum wage rate of $10.50 an hour is already scheduled to increase by a dollar in July 2016 (to $11.50). If the new bill is approved, the DC minimum wage will increase by another dollar in July 2017, and then by about $0.70 a year until it reaches $15.00 in 2020. After that, increases will be automatic and tied to the Consumer Price Index.
Tipped employees will also be getting an increase to their base pay. Minimum wage for employees entitled to a tip credit will increase in increments of approximately $0.56 a year to $5.00 (from $2.77) by 2020. After 2020, the tipped minimum will also be tied to the Consumer Price Index. As always, if the tips received by a worker do not equal an amount at least equal to the difference between the hourly wage paid and regular minimum wage, employers will have to make up the difference.
The bill will also require that the living wage at least equal the minimum wage.
Approval is likely as the Mayor has already announced that she will sign the bill into law. If approved, the changes will take effect beginning next year.