The first phase of the District of Columbia Tip Credit Elimination Act of 2021 became effective May 1, 2023.
The Tip Credit Elimination Act, which was passed by voters in the District of Columbia in November 2022 as Initiative 82, will phase out Washington, D.C.’s tip credit for employers with employees who receive tips by 2027. To achieve this, the act provides that the minimum cash wage for tipped employees will gradually increase as the maximum tip credit available to employers decreases.