D.C. Tipped Workers Policies: Sexual Harassment Reporting Due + Tipped Wage Outcomes Still TBD

Takeaways

• Employers with tipped employees in D.C. face a 05.31.26 deadline to report 2025 sexual harassment complaints, upload a compliant sexual harassment policy, and certify training on the Office of Human Rights portal. 
• The tipped minimum wage is scheduled to increase to 56 percent of the full minimum wage on 07.01.26. However, a pending voter referendum would accelerate elimination of the tipped minimum wage by mid‑2027.
• Employers should plan for both short‑ and long‑term impacts.

Related links

• Business Self-Service Form
• D.C. Law 26-55

Article

The Tipped Wage Workers Fairness Amendment Act of 2018 (D.C. Law 22-196) (TWWF) was enacted to strengthen workplace protections for tipped wage workers. The TWWF requires employers who have at least one tipped employee to submit certain information annually to the D.C. Office of Human Rights (OHR). The OHR’s business self-service portal opened on Jan. 1, 2026, for calendar year 2025 submissions. Businesses must upload their sexual harassment policy and certifications before the deadline of May 31, 2026.

The status of the tipped wage in D.C. is in flux, however. A 2025 D.C. law provides phased increases to the D.C. tipped minimum wage, until reaching 75 percent of the standard minimum wage in 2034; but a potential 2026 voter referendum could derail that plan and increase the tipped minimum wage more quickly, ultimately doing away with the tipped minimum wage altogether in mid-2027. If that occurs, the TWWF’s sexual harassment training requirements, policy requirements, and annual certifications could also disappear.

Tipped Wage Workers

Under the TWWF, “Tipped Employees” are those who are paid less than the full D.C. minimum wage (currently, $17.95 per hour) and are expected to receive enough in tips to at least equal the full minimum wage. The minimum wage will increase to $18.40 per hour on July 1, 2026.

Employers currently must pay tipped employees at least $10 per hour. That will increase to $10.30 per hour on July 1, 2026, with tips making up at least the rest of the full minimum wage rate. If a Tipped Employee’s hourly tip earnings (averaged weekly) combined with the base wage do not equal the D.C.’s full minimum wage, the employer must pay the difference.

Employers that pay tipped employees the full standard minimum wage are not covered by the TWWF.

Initiative 82: Tip Credit Elimination Act

In November 2022, D.C. voters approved Initiative 82, the “Tip Credit Elimination Act.” Aimed at gradually eliminating the tipped minimum wage altogether, the Tip Credit Elimination Act raises tipped workers’ base wage to equal the full minimum wage by mid-2027.

The Tip Credit Elimination Act sets the following schedule for increases:

• July 1, 2023: $8 per hour
• July 1, 2024: $10 per hour
• July 1, 2025: $12 per hour
• July 1, 2026: $14 per hour

On July 1, 2027, full minimum-wage parity would be achieved with elimination of the tipped minimum wage.

2025 Amendment to Initiative 82

In 2025, the D.C. Council passed emergency, and then permanent, legislation repealing the Tip Credit Elimination Act’s scheduled July 1, 2025, increase in the tipped minimum wage from $10 to $12 per hour. The Tipped Minimum Wage Timeline Amendment Act of 2025 left the tipped minimum wage at $10 per hour, where it remains today.

The legislation, part of D.C. Law 26-55 (the Fiscal Year 2026 Budget Support Act of 2025), was a compromise between Initiative 82 and the mayor’s proposed budget, which included a full repeal of Initiative 82. The Council cited the need to assess federal tip-tax changes and gather updated data on local restaurant conditions before moving forward. Thus, rather than fully repealing Initiative 82, the Council’s 2025 amendment recalibrates the phase-in schedule:

• Through June 30, 2026: Freeze the tipped minimum wage at $10 
• July 1, 2026: Increase to 56% of full minimum wage
• July 1, 2028: Increase to 60% of full minimum wage
• Every two years thereafter: Add 5%, capping the tipped minimum wage at 75% of the full minimum wage by July 1, 2034.

The law also requires that, beginning Jan. 1, 2026, pay stubs list each compensation component in addition to base wages and gratuities — including sales commissions, service charge percentage amounts, and bonuses. Additionally, the Office of the Chief Financial Officer must conduct a study every two years, starting in 2027, on the economic trends affecting the restaurant industry and tipped restaurant workers, and publish a report by Jan. 1, 2036, analyzing the effect of tipped minimum wage reaching 100 percent of the regular minimum wage.

Proposed Referendum

In the meantime, on Oct. 2, 2025, the D.C. Board of Elections received a proposed referendum asking voters to approve or reject the amendment act.

If the referendum is approved, the Tipped Minimum Wage Timeline Amendment Act of 2025 will become permanent. If it is rejected, Initiative 82 would be reinstated.

Act Now: 2026 TWWF Compliance Requirements

To comply with the TWWF, between Jan. 1, 2026, and May 31, 2026, covered businesses must:

1. Report to the OHR all sexual harassment complaints received in 2025; and 
2. Submit to the OHR their sexual harassment policy, which must meet certain requirements.

The OHR provides a portal to receive covered businesses’ certifications. In addition, employers must confirm they have completed training requirements whenever training is provided.

Businesses must submit a compliance report to OHR indicating the number of “instances” sexual harassment was reported to management during 2025 and the number of alleged harassers who were non-managerial employees, managerial employees, owners, or operators. An “operator” is a person who oversees the general operation of the employer’s organization. There is little guidance on what qualifies as an “instance” for purposes of this requirement.

In addition, employers must maintain a sexual harassment policy that clearly outlines the process for employees reporting instances of sexual harassment to management and to the OHR. Businesses must distribute this policy to all employees, post it in a conspicuous place accessible to all employees and staff, and file a copy with the OHR annually using the compliance portal.

Finally, employers must provide anti-sexual harassment training every two years to all employees, managers, owners, and operators. Training should address how to respond to, intervene in, and prevent sexual harassment. The training course may be offered either in person, virtually, or through pre-recorded training. The OHR provides training materials and certifies approved providers that employers must use. Businesses must report their training compliance to the OHR within 30 business days of the training session, including the names and email addresses of all trainees, using a form prescribed by the OHR. New employees are required to be trained within 90 days of hire, unless the employee received training within the past two years.

Employers Takeaways at a Glance

• Current tipped worker minimum wage: $10 per hour until July 1, 2026, to increase to 56 percent of the full minimum wage on that date.
   
• Short-term compliance: Now is a good time to ensure sexual harassment policies meet statutory requirements and to make any needed modifications. Submit sexual harassment policies and required information to the OHR portal by May 31, 2026. Ensure pay stubs include the required information. 
   
• Longer-term compliance: Continue to train new employees within 90 days of start date, unless they have been trained within the past two years. Continue to train all employees, as well as owners and operators, every two years. 
   
• Watch for 2026 changes: The D.C. tipped minimum wage may still be subject to change. 
   
• Strategic planning: Assess staffing levels, labor costs, and pricing strategies in anticipation of long-term wage increases.

Jackson Lewis attorneys are available to assist employers with these requirements, including training by an OHR-certified trainer.

(Law Graduate Nina Bundy and Law Clerk Oscar Copeland contributed to this article.)