D.C. Tipped Wage Workers Fairness Amendment Act of 2018

The Council of the District of Columbia enacted the Tipped Wage Workers Fairness Amendment Act of 2018 on October 30, 2018. The act has several key functions that will affect D.C. employers in several ways. The act will take effect within 30 days of October 30, 2018, unless otherwise stated.

The Tipped Wage Workers Fairness Amendment Act repeals Initiative No. 77- Minimum Wage Amendment Act of 2018. Initiative No. 77 would have repealed the tip credit for employers with tipped employees. This has been repealed as of October 11, 2018 and the tip credit is once again available for employers with tipped employees.

The act amends the Service improvement and Fiscal Year 2000 Budget Support Act of 1999 to require the Office of Human Rights to provide a sexual-harassment training course for employees of businesses that employ tipped workers, or allows the office of Human Rights to certify a list of providers who may provide sexual-harassment training.

The act amends the Minimum Wage Act Revision Act of 1992 to require employers who employ tipped workers to provide their employees with a tip-out sheet each pay period and to use a third-party payroll provider by January 1, 2020. The third party payroll provider is required to report certain wage data on a quarterly basis, including the employer’s tip-out policy, to the Department of Employment Services.

The act also requires that business owners or operators who employ tipped workers annually attend training on the requirements of the District’s wage-theft law. Managers who are employed by an employer who employs tipped workers must annually attend an in-person training on the requirements of the District’s wage-theft law. Employers must provide employees with the opportunity to attend training on the requirements of the District’s Wage-theft law. Employers of tipped employees are required to annual certify to the Department of Employment Services that the training requirements have been met.

As any additional details become available, we will continue to provide updates.

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This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.