Tips - District of Columbia

Summary of difference between federal and state regulations

There are certain instances where employers can pay employees at a rate lower than the minimum hourly wage specified by the federal Fair Labor Standards Act. The most common instance pertains to an employee who earns tips. The employer can deduct the amount of the tips (but only up to a certain maximum amount) from the hourly wage.

The District of Columbia’s D.C Minimum Wage Amendment Act of 2004 has a maximum tip credit provision, but it will be eliminated over time. The minimum wage required to be paid by any employer in the District of Columbia to any employee who receives gratuities is $5.00 (as of 1/1/2023, $8.00 as of 7/1/2023) an hour, provided that the employee actually receives gratuities in an amount at least equal to the difference between the hourly wage paid and the minimum wage.

Under the DC Tip Credit Elimination Act of 2022, the tip credit will gradually be eliminated, such that the mandatory base wage paid by employees increases until 2027, when the mandatory base wage matches the minimum wage established by DC law.

The tipped minimum wage will increase as follows:

• $6.00 as of 1/1/23
• $8.00 as of 7/1/23
• $10.00 as of 7/1/24
• $12.00 as of 7/1/25
• $14.00 as of 7/1/26
• The regular minimum wage as of 7/1/27

State

Contact

D.C. Office of Wage-Hour

Regulations

D.C Minimum Wage Amendment Act of 2004

Federal

Contact

Wage and Hour Division

Regulations

29 CFR 516.28