DC Servers Flood Six-Hour Hearing Opposing Initiative 82

This week, the District of Columbia City Council Committee on Executive Administration and Labor hosted a hearing to hear employees’ experiences after a year and change under Initiative 82, which is eliminating the city’s tip credit.

Under the law, D.C. restaurants have been subject to three tipped wage hikes since May 2023 — up to $10 per hour as of July 2024. The law will fully eliminate the tip credit by 2027.

Workers turned out in droves to comment on how Initiative 82 has affected them — slashed their tips and take home pay, reduced support staff, and in some cases, eliminated jobs and closed restaurants.

See the highlights below:

Quotes from the testimony:

“Since Initiative 82  has begun to be implemented…I’m now making up to 50% less….for the first time in my adult career at 41 years old…I don’t know what my future looks like.”  – Laura Pacholkiw, Bartender

“I can go to Maryland and make at least $200, oven $300 or more, for five hours of work, or work double those hours and only make $150 in DC.” – Rachel Giordano, Server

“Here we are now suffering the consequences … .my working hours were cut by 5-10 hours per week and service charges decreased mv average tip percentage from 23-25% to 18-20%.” “I barely have any support staff now…I have to do everything myself to be on the floor, with the support of only one person in the whole dining room..” – Yana Tarakanova, Server

“Since Initiative 82, what was happening is staff was cut. All of the sudden I don’t have my food runners and bussers I don’t have my polishers. I’m now having a larger section with less help. And there’s this 20% service fee…which did definitely hurt my percentage in tips.” – Lili Celine Cuzor, Server

“A lot of people see the service fee, which is not a gratuity, and decide not to tip.” – Dennis Brooks, Server

“Service fees being added has been mistakenly think its tips, its reduced our earnings. – Veena Arulhas, Server

“My guests would report that after [visiting the restaurant] for over 5 or 10 years, they do not visit anymore [due to service fees from I-82]… it takes away the livelihood of servers and support staff.” – Joy Funk, Server