Initiative 82
{{Short description|2022 Washington, D.C., ballot measure}}
{{Use mdy dates|date=December 2022}}
{{Infobox referendum
| name = Initiative 82
| title = An initiative to increase the minimum wage for tipped employees to the same level as non-tipped employees.
| yes = 132925
| no = 46861
| total = 179786
| invalid = 25,723
| map = DC Initiative 82 2022.svg
| mapcaption = Precinct results
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Yes
{{legend|#28497C|80–90% |border=1px #AAAAAA solid}}
{{legend|#47729E|70–80% |border=1px #AAAAAA solid}}
{{legend|#7D9CBB|60–70% |border=1px #AAAAAA solid}}
{{legend|#B6C8D9|50–60% |border=1px #AAAAAA solid}}
{{col-end}}
| mapdivision =
| notes =
}}
{{Elections in the District of Columbia sidebar}}
Initiative 82 was a voter-approved ballot initiative in Washington, D.C., to phase out the special minimum wage for tipped employees as part of the national Fight for $15 campaign. In the November 2022 general election, D.C. voters approved Initiative 82 by a margin of 74% to 26%, though about 12% of all participating voters did not vote on the initiative. It was nearly identical to Initiative 77, a ballot measure in the 2018 primary election that was approved by D.C. voters but later overturned by the D.C. Council before it could enter into force.{{cite news |last=Nirappil |first=Fenit |date= October 5, 2018 |title='Poisoning democracy': in a city without representation in Congress, repeal of ballot measure angers residents |url=https://www.washingtonpost.com/local/dc-politics/poisoning-democracy-in-a-city-without-representation-in-congress-repeal-of-ballot-measure-angers-residents/2018/10/04/165c329e-c751-11e8-b2b5-79270f9cce17_story.html |work=The Washington Post |location= Washington, DC|access-date=October 31, 2022 }}
Initiative 82 passed its 30-day legislative review period and became law on February 23, 2023,{{Cite web|type=Act|date= February 23, 2023 |title=B24-1149 - Initiative 82 – District of Columbia Tip Credit Elimination Act of 2022|url=https://lims.dccouncil.gov/Legislation/B24-1149 |work=DC Council |location= Washington, DC|access-date=March 7, 2023 }} however on January 17, 2023, the DC Council voted to delay the first pay increase until May 1, 2023.{{Cite web | work=DCist| author=Amanda Michelle Gomez | date=17 January 2023 | access-date=7 March 2023 |title=D.C. Council Votes To Delay Minimum Wage Increase for Tipped Workers To May |url=https://dcist.com/story/23/01/17/dc-council-votes-to-delay-initiative-82-increase-to-may/|archive-url=https://web.archive.org/web/20230117192833/https://dcist.com/story/23/01/17/dc-council-votes-to-delay-initiative-82-increase-to-may/|url-status=live|archive-date=January 17, 2023}}
Background
On Monday, June 22, 2021, Ryan O'Leary, a former restaurant worker, submitted the legislative text for the Full Minimum Wage for Tipped Workers Amendment Act at the DC Board of Elections with the goal of the Initiative to appearing on the June 2022 Primary election ballot.{{Cite web | work=DCist| author=Ally Schweitzer | date=22 June 2021 | access-date=7 March 2023 |title=A Former D.C. Restaurant Worker Is Reviving A Controversial Initiative On The Tipped Minimum Wage |url=https://dcist.com/story/21/06/22/a-former-d-c-restaurant-worker-is-reviving-a-controversial-initiative-on-the-tipped-minimum-wage/|archive-url=https://web.archive.org/web/20210622185641/https://dcist.com/story/21/06/22/a-former-d-c-restaurant-worker-is-reviving-a-controversial-initiative-on-the-tipped-minimum-wage/|url-status=live|archive-date=June 22, 2021}} On Thursday, August 26, 2021, the DC Board of Elections conducted their "subject matter" hearing and voted that the Initiative could go forward and begin the ballot access phase.{{Cite web | work=DCist| author=Ally Schweitzer | date=26 August 2021 | access-date=7 March 2023 |title=D.C. Voters Might Get Another Chance To Weigh In On The Tipped Minimum Wage |url=https://dcist.com/story/21/08/26/dc-voters-might-get-another-chance-to-weigh-in-on-the-tipped-wage/|archive-url=https://web.archive.org/web/20210826173501/https://dcist.com/story/21/08/26/dc-voters-might-get-another-chance-to-weigh-in-on-the-tipped-wage/|url-status=live|archive-date=August 26, 2021}} On Wednesday, October 13, 2021, at the regular meeting of the DC Board of Elections, the Board approved the revised short title and summary statement, and the petition form for Initiative 82, now known as the District of Columbia Tip Credit Elimination Act of 2022.{{Cite web | work=Transcript| author=Neal R. Gross and Co., Inc | date=13 October 2021 | access-date=7 March 2023 |title=DC Board of Elections, October 2021 Monthly Meeting, Transcript| url=https://dcboe.org/CMSPages/GetFile.aspx?guid=7bf0f817-0de9-4f98-979f-208c389297cc}}
Initiative 82 would gradually increase the tipped minimum hourly wage from the $5.05{{Cite web |title=D.C. Minimum Wage to Increase to $15.20 on July 1, 2021|work=DC Department of Employment Services|type=Press Release |date=June 30, 2021|access-date=March 7, 2023 |url=https://does.dc.gov/release/dc-minimum-wage-increase-1520-july-1-2021%C2%A0 }} in 2021 to at least $17.50, matching the non-tipped minimum wage in 2027.{{Cite web | work=The Washington Post| author=Washington Post Staff | date=31 October 2022 | access-date=4 September 2022 |title=D.C. I-82 foes hope last-ditch appeal will keep measure off ballot |url=https://www.washingtonpost.com/dc-md-va/2022/09/04/dc-initiative-82-opponents-appeal/}} Although some DC restaurants voluntarily have stopped accepting tips and instead have begun paying their servers at or above minimum wage in the aftermath of Initiative 77, tipping would still be allowed under the new rules.{{Cite web |title=Here's what Initiative 82 could mean for tipping in D.C. |last=Hopkins |first=Paige |work=Axios |date=25 October 2022 |access-date=31 October 2022 |url= https://www.axios.com/local/washington-dc/2022/10/25/initiative-82-tipping-dc }}
Although the DC Board of Elections approved the Initiative to appear on the primary election ballot, opponents argued that the Board committed errors in verifying signatures and filed a lawsuit in D.C. Superior Court to keep the measure off the ballot.{{Cite web | work=The Washington Post| author=Washington Post Staff | date=31 October 2022 | access-date=31 October 2022 |title=D.C. elections: What to know about Initiative 82 |url=https://www.washingtonpost.com/dc-md-va/2022/10/31/dc-initiative-82-tipped-wage-faq/}} The opponents ultimately lost their original lawsuit and appeals in early September, 2022, allowing the Initiative to appear on the general election ballot.{{Cite web |title=D.C.'s Initiative 82 spurs another battle over tips |last=Hopkins |first=Paige |work=Axios |date=12 September 2022 |access-date=31 October 2022 |url= https://www.axios.com/local/washington-dc/2022/09/12/initiative-82-dc-restaurant-tips }}
Political arguments
{{Excerpt|Initiative 77|Political arguments|subsections=yes}}
Support and opposition
The campaign committee behind the Initiative was the [https://betterrestaurantsdc.org/ D.C. Committee to Build A Better Restaurant Industry], which raised $461,854.65{{Cite web |title=Office of Campaign Finance Report on Receipts and Expenditures|author=Office of Campaign Finance|work=DC Government, Office of Campaign Finance, January 31st Report|date=31 January 2023 |access-date=7 March 2023|url=https://efiling.ocf.dc.gov/FinancialReports/EntireReport/31868/INTOOO226633_2023%20January%2031st%20Report%20(Build%20a%20Better%20Restaurant%20Industry%20Cmte.)_%20Original}} in donations, which were mostly used for collecting sufficient signatures to appear on the ballot.{{Cite web |title=Here's everything you need to know about D.C.'s Initiative 82 |author=Martin Austermuhle |author2=Amanda Michelle Gomez |work=NPR.org |date=19 October 2022 |access-date=31 October 2022 |url= https://www.npr.org/local/305/2022/10/19/1129853605/here-s-everything-you-need-to-know-about-d-c-s-initiative-82}} The largest contributions to the campaign were from Open Society Policy Center,{{Cite web |title=Office of Campaign Finance Report on Receipts and Expenditures, January 31 Report|author=Office of Campaign Finance|date=30 November 2022 |access-date=7 March 2023|url=https://efiling.ocf.dc.gov/FinancialReports/EntireReport/31427/INTOOO226633_2022%20January%2031st%20report_%20Amendment1}} Dr. Bronner's Magic Soaps,{{Cite web |title=Office of Campaign Finance Report on Receipts and Expenditures, 8 Day Pre General Election Report|author=Office of Campaign Finance|date=30 November 2022 |access-date=7 March 2023|url=https://efiling.ocf.dc.gov/FinancialReports/EntireReport/31430/INTOOO226633_2022%208%20Day%20Pre%20General%20Election%20Report_%20Amendment3}} and Mintwood Strategies.
The campaign committee against the initiative was called [https://voteno82.com/ No to 82] and was run out of the K Street office of the Restaurant Association of Metropolitan Washington.{{Cite web |title=Office of Campaign Finance Report on Receipts and Expenditures, Second Report|author=Office of Campaign Finance|date=11 July 2022 |access-date=7 March 2023|url=https://efiling.ocf.dc.gov/FinancialReports/EntireReport/30970/INTOOO226635_2022%20Second%20Report%20(No%20to%20I82%20Cmte.)_%20Original}} The opposition campaign received $685,622.70 in contributions from the National Restaurant Association,{{Cite web |title=Office of Campaign Finance Report on Receipts and Expenditures, January 31st Report|author=Office of Campaign Finance|date=31 January 2023 |access-date=7 March 2023|url=https://efiling.ocf.dc.gov/FinancialReports/EntireReport/31893/INTOOO226635_2023%20January%2031st%20Report%20(No%20to%20I82%20Cmte.)_%20Original}} Darden Restaurants, Starr Restaurants, Lettuce Entertain You Enterprises, Brinker International, Farmers Restaurant Group, as well as other trade groups, and a number of restaurants located in DC.
Although Initiative 77 was overruled by the council, the Washington City Paper reported that, due to changes in membership, a majority of members said they would not vote to overturn it, so "Initiative 82 looks safe should voters approve it in November".{{Cite web |title=Most Councilmembers Won't Seek Another Repeal If Tipped Wage Ballot Measure Passes - Washington City Paper |last=Koma |first=Alex |work=Washington City Paper |date=20 September 2022 |access-date=31 October 2022 |url=https://washingtoncitypaper.com/article/571874/most-councilmembers-wont-seek-another-repeal-if-tipped-wage-ballot-measure-passes/ }} However, before the Initiative completed its congressional review period, the DC Council voted to delay the first pay raise until May 1, 2023.
Pay raises
The District of Columbia's Fair Shot Minimum Wage Emergency Amendment Act of 2016 gradually increased both the standard and tipped minimum wages each July until July 2020, when they eventually equaled $15 and $5, respectively. Each year since, the minimum wages have increased in proportion to any increases in the local consumer price index.{{Cite web|type=Act|date=June 28, 2016|title=Fair Shot Minimum Wage Emergency Amendment Act of 2016|url=https://code.dccouncil.gov/us/dc/council/acts/21-428|access-date=March 7, 2023}}
On May 1, 2023, the first pay raise for tipped workers went into effect. The second tipped wage increase took place two months later on July 1, 2023,{{Cite web | work=Office of Wage-Hour Compliance|author=Department of Employment Services|access-date=March 7, 2023 |title=Minimum Wage|url=https://does.dc.gov/service/office-wage-hour-compliance-0}} and will increase $2.00 annually until July 1, 2026. The final tipped wage increase is scheduled to take place on July 1, 2027, and due to the variability of the consumer price index, the exact increase needed to achieve parity will not be determined until January 2027. However, based on the 2025 minimum wage, the final tipped wage increase on July 1, 2027 will be at least $3.95.
The information listed in the table below is based on the latest information from the Office of Wage-Hour Compliance and the legislative text of the Initiative.
On July 1, 2027, the tipped wage will be eliminated in the District of Columbia and there will be one minimum wage for all workers. The exact minimum wage will not be known until January 2027.
Vote
Initiative 82, officially presented as the "District of Columbia Tip Credit Elimination Act of 2021," had the following description on ballots:
Under current law, employers of employees classified as "tipped workers" may take a credit against tipped wages received by workers to satisfy the minimum wage guaranteed to all workers by law. If enacted, the Initiative would gradually eliminate the credit, such that the mandatory base wage (currently $5.05 per hour, indexed to inflation) paid by employers shall increase until 2027, when the mandatory base wage matches the minimum wage established by District of Columbia law (currently $15.20 per hour, indexed to inflation). Tips continue as property of employees and will be in addition to the statutory minimum hourly wage.{{Cite web |title=District of Columbia Board of Elections - 2022 Elections |url=https://www.dcboe.org/Elections/2022-Elections |access-date=2022-11-10 |website=www.dcboe.org}}
On November 8, 2022, in the general election, D.C. voters approved the measure with 73.94% of valid votes, a margin of nearly 50%. Over 25,000 voters, more than 12% of all voters that participated, chose to leave the question blank.
{{Referendum
| title = Initiative 82
| yes = 132,925
| yespct = 73.94
| no = 46,861
| nopct = 26.06
| valid = 179,786
| validpct = 87.52
| invalidname = Over and undervotes
| invalid = 25,723
| invalidpct = 12.48
| electorate = 504,815
| turnoutpct = 40.69
| source = District of Columbia Board of Elections{{Cite web |date=2022-11-30 |title=General Election 2022 - Certified Results |publisher=District of Columbia Board of Elections |url=https://electionresults.dcboe.org/election_results/2022-General-Election |access-date=2022-12-03}}
}}