Home > Regions > North America > D.C. Voters Vote to Phase out Tip Credit and Nebraska Voters Raise State Minimum Wage

D.C. Voters Vote to Phase out Tip Credit and Nebraska Voters Raise State Minimum Wage

On Tuesday, November 8, 2022, Washington, D.C. voters approved a ballot measure to eliminate the “tip credit” which allowed service industry employers to pay servers, bartenders, and other tipped employees $5.35 an hour rather than D.C.’s $16.10 per hour minimum wage. Currently, employers are required to pay the balance if an employee is unable to make up the difference through tips. Initiative 82 will phase out the tip credit, raising the tip credit minimum wage to $6.00 in January 2023, and then to $8 on July 1, 2023, and then increasing by $2.00 every year until 2027. In 2027, D.C. service industry employers will be required to pay employees at D.C.’s effective minimum wage.

Nebraska voters also approved a ballot initiative regarding minimum wage, passing Initiative 433, which raised the state’s minimum wage from $9.00 an hour to $10.50 per hour by 2023, with annual raises of $1.50 an hour per year until 2026 when the minimum wage will reach $15.00 per hour. After 2026, the minimum wage will be tied to Consumer Price Index.