The District of Columbia Department of Employment Services ("DOES") has announced a minimum wage increase for all D.C. workers and tipped employees beginning July 1, 2024.

Here's what employers need to know:

Minimum Wage Increase for D.C. Employees

Beginning July 1, 2024, the minimum wage will increase from $17.00 per hour to $17.50 per hour for all D.C. workers, regardless of the employer's size.

DOES notes that the minimum wage will increase each year in proportion to the increase in the Consumer Price Index—which increased by 2.8% in 2023.

Minimum Wage Increase for Tipped Employees

Additionally, beginning July 1, 2024, the base minimum wage for tipped employees will increase from $8.00 per hour to $10.00 per hour. However, if an employee's hourly tip earnings—averaged weekly—added to the base minimum wage does not equal D.C.'s full minimum wage, employers must pay the difference.

For employees who receive gratuities, the minimum wage will increase during each successive year pursuant to the Consumer Price Index.

Key Takeaways for Employers

D.C. employers should take note that beginning July 1, 2024:

• Regardless of employer size, the minimum wage will be increasing from $17.00 per hour to $17.50 per hour for all D.C. employees.
• The base minimum wage for tipped employees will increase from $8.00 per hour to $10.00 per hour.
• For tipped employees whose earnings that are added to the base minimum wage do not equal D.C.'s full minimum wage, employers will have to pay the difference.
• The minimum wage for employees who receive gratuities will increase annually, based on the Consumer Price Index.

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As always, DWT will provide updates as needed. In the meantime, if you have any questions about your company's compliance, please contact legal counsel.