The headline numbers
Indexed annually. $17.50 effective July 2024. Some sources expect $17.95 by July 2025.
District of Columbia currently allows a tip credit, but it's being phased out. Direct wage today is $10.00/hour, with tips required to bring total earnings to at least the full minimum of $17.50. The phase-out schedule moves toward eliminating the tip credit entirely. Initiative 82 (passed 2022) phases out the tip credit gradually. By July 2027 there will be no tip credit — all tipped workers will receive the full district minimum wage.
Tip pool rules
Initiative 82 (passed 2022) phases out the tip credit gradually. By July 2027 there will be no tip credit — all tipped workers will receive the full district minimum wage.
Universal rules that apply in every state regardless of tip credit status:
- Managers and supervisors cannot keep any portion of tips, even in a valid tip pool. This is a federal rule under FLSA Section 203(m)(2)(B) and applies in District of Columbia.
- Workers must keep all tips minus valid tip pool / tip-out contributions.
- If the employer uses a tip credit, only customarily tipped employees can be in the tip pool. To include BOH (cooks, dishwashers), the employer must pay full minimum wage to all participants.
Sidework and the 80/20 rule in District of Columbia
DC follows the federal 80/20 rule administratively. With tip credit being phased out by 2027, the rule will become moot.
The federal 80/20 rule was struck down by the 5th Circuit in Restaurant Law Center v. DOL (2024) and is no longer enforceable as a federal regulation. Whether sidework time over 20% triggers full-minimum-wage protection in District of Columbia depends entirely on state-level enforcement. If your state doesn't have its own active rule, all sidework hours within the tipped occupation may be paid at the tipped wage.
Local minimums that may apply
Several cities and counties in the U.S. set higher minimum wages than their state. Local minimums always supersede state minimums where applicable. Check whether your city has its own ordinance:
- No major city-level minimum wage ordinances in District of Columbia currently — the state minimum applies statewide for tipped workers.
Notable state-specific items
- Initiative 82 (2022) phasing out the tip credit by July 2027
- Top income tax rate 10.75% same as NJ
- Highest minimum wage in continental US
How to verify the current numbers
Wages, indexed minimums, and tip credit rules change. Always cross-check before relying on specifics:
- State labor agency: https://does.dc.gov/
- State revenue agency (for tax info): https://otr.cfo.dc.gov/
- Federal DOL Wage and Hour Division: dol.gov/agencies/whd