We, the undersigned, are petitioning to SAVE THE TIP CREDIT and PROTECT OUR JOBS & DC SMALL BUSINESSES. I-82 would devastate DC’s small bars and restaurants. If it passes, it will cause more closures of businesses that are still trying to recover from the pandemic. We need to modify NOT eliminate the tip credit to allow small businesses to survive. Vote NO on Initiative 82 this election day.

We are the tipped employees, the family members of these workers, the restaurant owners & hospitality operators, the people that depend on these small businesses in DC to thrive, and the DC residents that proudly support our local small businesses.

We are imploring DC residents and voters to please hear our voices because our livelihoods are being threatened again by outside organizations who are trying to hurt the heart of the DC Restaurant Industry.

Initiative 82 sounds familiar because it was on the ballot in 2018 as Initiative 77. Large organizations like the Restaurant Opportunity Center, “One Fair Wage” and Democratic Socialists of America are pushing a narrative that is untrue for small businesses that utilize and need the tip credit for their workers. These well-funded organizations used their considerable resources to get the elimination of the tip credit onto the ballot four years ago and they are doing it again.

The tipped workers, their supporters, and DC small businesses did not stand by while these outside, special interest groups spread a false campaign to force a policy that would be detrimental to our industry and our jobs.  We were able to mobilize and plead with the DC Council to hear our voices, and they did. Most of our representatives listened to our testimonies, read our letters, and voted to repeal Initiative 77 before it could devastate our industry.

And now, tipped workers and small businesses – who are still trying to climb out of the crippling impact of the pandemic shutdown – are once again at risk of being devastated by bad policy at the hands of well-intentioned voters.

We are asking you, the voters, to listen to tipped workers and small business owners when we ask you to please help us save our industry. We are known for our vibrant and diverse small businesses that form the heart of DC, and we are imploring you to listen to our voices!

Here are just a few of the very important reasons why you should vote NO on Initiative 82:

 

*Tipped workers are guaranteed the minimum wage. Tipped employees already receive the same minimum wage (and MORE) as all other workers due to the “Fair Shot Minimum Wage Amendment Act of 2016”. Federal law and most states allow tipped workers to be paid a lower minimum wage, as long as they earn at least the full minimum wage when tips are included. (The difference between the tipped wage and the full minimum wage is called the "tip credit.") If tips plus the tipped wage does not equal at least the current minimum wage, then businesses are legally required to make up that amount. Under this current model, most servers and bartenders make well above the minimum wage when their tips are included. In DC, tipped workers earn an average of $23/hr; many make even more than that. Tipped workers will also receive the same increases yearly in proportion to increases in the CPI just like all other workers, which is already law.

*This initiative will cut workers' pay and limit opportunities for advancement.  Tipped workers will earn less, as many operators will be forced to change their business model while the public will tip less. The promise of tips on top is a quaint idea but other states who have had their tip credit eliminated have shown that this is not the case. In fact, these states have lost many of their small businesses.

*Nothing in the proposed legislation guarantees that workers would make “Tips on Top.” There is nothing specifically stated in the language of I-82 that would guarantee that guests would tip on top. Nor does it mandate that all service charges would go directly to the employee.  Furthermore, there is absolutely nothing in the proposed legislation that would ensure assistance for businesses that would have to incur anywhere from 150-200% increase in labor costs. If I-82 were to pass, bars and restaurants would be hit with exponential labor costs without any assistance from the government.

*Entry-level jobs will be the first to go. Positions like bussers, food runners, expos, and barbacks will no longer exist. As a result, servers & bartenders will be spread too thin to deliver the quality of service for which we strive.  As the quality of service decreases, so will tips.

*Tips will decrease. A 2016 Census Bureau study and a 2020 Cornell study showed that as the base wage for tipped workers increased, our tips decreased. This is laid bare in a Bureau of Labor Statistics study that found tipped workers are making less even as their base wage goes up.
 

*Kitchen workers will suffer the most. With tipped workers being given a “raise” that they are not asking for, how long will a kitchen employee have to wait for their annual raise? Will they ever see one? With such a drastic hike in front-of-house labor costs if the tip credit is eliminated, mathematically it would be near to impossible to increase wages for back-of-house employees, and those wages would likely remain stagnant. 
 

*A monumental shift towards quick service restaurants/counter service. In the seven states without a tip credit, you may see restaurants opening, but it's important to note that fewer of them are full-service restaurants. Ultimately, getting rid of the tip credit will eliminate our jobs entirely.
 

*Automation. All over the country we're seeing more iPads at dining tables-a move like this eliminates 80-90 percent of waitstaff. Without a tip credit, more restaurants will turn to automation to keep costs down, meaning countless jobs will be lost.
 

*Service charges will be implemented. Unlike tips, service charges are the property of the business – not tipped workers. Those monies can be distributed in any way that the business sees fit, and may not be given out as gratuities at all, meaning workers may be making LESS than what they currently make.
 

*Many small, independently-owned establishments will close. A number of these small businesses will not be able to shoulder the burden of this unforeseen strain that they did not originally allocate for in their original business plans and will be forced to close. Larger restaurant groups and national chains currently operating in the District could perhaps adjust their business models and survive, by eliminating positions, increasing menu prices, and implementing service charges; the smaller, independently-owned neighborhood bars, restaurants, and nightlife establishments that make up the fabric of our vibrant and diverse hospitality community would suffer the most and would have to make the devastating decision to shutter their doors if I-82 were to pass.

*The tip credit allows restaurant owners to keep labor costs down, while keeping it affordable for consumers to dine out.  Restaurants will be forced to raise their prices drastically to help cover costs. This will make it very difficult for average citizens to go out to eat.

*Tipped employees are strong, highly skilled career professionals. Far from being demeaning, as some activist organizations have claimed, the tipping system is empowering for servers and bartenders and other tipped employees, allowing us to hone our skills and be respected for our craft.
On top of how COVID-19 has ravaged our industry over these last two years, eliminating the tipped wage system could be the final nail in the coffin for a large portion of our industry, and would ultimately be irresponsible legislation. 

 

We can find other ways to combat any outstanding issues in our industry, but Initiative 82 only creates more issues from which DC Small Businesses will not be able to recover. If anything, let’s talk about modifying, NOT eliminating. Let’s not hurt all the small businesses that need the tip credit to survive and help their employees continue to have prosperous careers in an industry that fits their lifestyles. Let us work together for a better answer.  

But this Election Day, please help us by protecting DC’s Small Businesses and their hard-working employees and Vote NO on Initiative 82. 

Please sign this petition as a show of solidarity within our community in our collective opposition to I-82.  Now is the time to make our voices heard. Again.