Initiative 82

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.[1]

Background

Similar to Initiative 77, Initiative 82 would gradually increase the tipped minimum hourly wage from the current $5.35 to $16.10, matching the non-tipped minimum wage in 2027.[2] 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.[3]

Although the DC Board of Elections approved the Initiative to appear on the 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.[4] The opponents ultimately lost their original lawsuit and appeals in early September, 2022, allowing the Initiative to appear on the ballot.[5]

Political arguments
This section is an excerpt from Initiative 77 § Political arguments.[edit]

For

  • Employers have too much power over tipped employees, and it results in wage theft. Major restaurants that do business in the district have settled lawsuits that made allegations of wage theft.[6]
  • The tipped minimum wage extends far beyond bartenders and waitstaff, for example nail stylists, landscapers, valets, cab drivers, bellhops, massage therapists, and housecleaners, among others. These workers are disproportionally women, people of color, living in poverty, and are often not tipped the same as bartenders and waitstaff.[7][8]
  • Tipped workers have to tolerate inappropriate behavior from customers, including sexual harassment, to avoid a reduction in tips. The majority of tipped workers in D.C. reported having experienced sexual harassment while at work.[7]
  • The tipped minimum wage is a legacy of slavery.[9] While tipping existed before the abolition of slavery, employers in the railroad and restaurant industries – where formerly enslaved African Americans worked – used the practice to keep their wages low.[10]

Against

  • Tipped wages keep business's operating costs down, especially for bars and restaurants, which can have tiny profit margins. Eliminating the wage means that businesses will either generate less profit or raise their prices to address the new costs.[6]
  • Tips enable a worker to earn much more than the minimum wage, while never making less than it. Opponents argue that customers will stop tipping since they believe that workers are earning a suitable wage. Workers who were making more than the minimum wage on average will see their incomes decrease.[6] Supporters pointed out that in all jurisdictions where the tipped minimum wage was abolished, there was no change in established tipping practices.[8]
  • Most tipped workers who publicly spoke about eliminating the tipped minimum wage have been in the opposition. However, supporters argue that tipped workers in support fear retaliation from their employers, who are mostly in opposition, and do not express their support publicly.[8]

Support and opposition

The Initiative was largely backed by the D.C. Committee to Build A Better Restaurant Industry and raised more than $300,000 in donations used for collecting sufficient signatures to appear on the ballot.[11]

The campaign against the Initiative has been linked to the Restaurant Association of Metropolitan Washington, which has received contributions from the National Restaurant Association, other trade groups, and a number of restaurants located in DC.[11]

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".[12]

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.[13]

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.[14]

Initiative 82
Choice Votes  %
Yes 132,925 73.94
No 46,861 26.06
Valid votes 179,786 87.52
Over and undervotes 25,626 12.48
Total votes 205,412 100.00
Registered voters/turnout 504,815 40.69
Source: District of Columbia Board of Elections[14]

See also

References
  1. Nirappil, Fenit (October 5, 2018). "'Poisoning democracy': in a city without representation in Congress, repeal of ballot measure angers residents". The Washington Post. Washington, DC. Retrieved October 31, 2022.
  2. Washington Post Staff (October 31, 2022). "D.C. I-82 foes hope last-ditch appeal will keep measure off ballot". The Washington Post. Retrieved September 4, 2022.
  3. Hopkins, Paige (October 25, 2022). "Here's what Initiative 82 could mean for tipping in D.C." Axios. Retrieved October 31, 2022.
  4. Washington Post Staff (October 31, 2022). "D.C. elections: What to know about Initiative 82". The Washington Post. Retrieved October 31, 2022.
  5. Hopkins, Paige (September 12, 2022). "D.C.'s Initiative 82 spurs another battle over tips". Axios. Retrieved October 31, 2022.
  6. Austermuhle, Martin; Gomez, Amanda Michelle (October 19, 2022). "Here's Everything You Need to Know About Initiative 82". NPR. Retrieved December 5, 2022.
  7. Quinnell, Kenneth (June 18, 2018). "What You Need to Know About Washington, D.C.'s Initiative 77 and the Minimum Wage". AFL–CIO. Retrieved December 5, 2022.
  8. Capps, Kriston (June 14, 2018). "D.C.'s War Over Restaurant Tips Will Soon Go National". Bloomberg News. Retrieved December 5, 2022.
  9. "Frequently Asked Questions". DC Committee to Build a Better Restaurant Industry. Retrieved December 5, 2022. The tip credit is a relic of slavery and we believe tipped workers deserve one fair wage, with tips on top.
  10. Testino, Laura (December 16, 2020). "Fact Check: Tipping Began Amid Slavery, Then Helped Keep Former Black Slaves' Wages Low". USA Today. Retrieved December 5, 2022.
  11. Martin Austermuhle; Amanda Michelle Gomez (October 19, 2022). "Here's everything you need to know about D.C.'s Initiative 82". NPR.org. Retrieved October 31, 2022.
  12. Koma, Alex (September 20, 2022). "Most Councilmembers Won't Seek Another Repeal If Tipped Wage Ballot Measure Passes - Washington City Paper". Washington City Paper. Retrieved October 31, 2022.
  13. "District of Columbia Board of Elections - 2022 Elections". www.dcboe.org. Retrieved November 10, 2022.
  14. "General Election 2022 - Certified Results". District of Columbia Board of Elections. November 30, 2022. Retrieved December 3, 2022.
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