Washington, D.C., Minimum Wage on the Rise

In recent minimum wage activity, lawmakers in D.C. have approved a plan to hike the hourly minimum wage for workers by 2020. The current hourly minimum wage of $10.50/hour (which is scheduled to rise to $11.50 by July 1, 2016, pursuant to earlier legislation) is slated to jump via a series of annual increases thereafter to $15.00/hour by July 1, 2020. Tipped employees’ minimum wage is proposed to progress from the current hourly rate of $2.77 to $5.00 over the same time frame. The bill, referred to as the Fair Shot Minimum Wage Amendment Act of 2016, is anticipated to be signed by D.C. Mayor Muriel Bowser and will be subject to congressional review thereafter. In the event of congressional delay (due to summer recess, etc.), an emergency bill has likewise been introduced (and is currently retained by the counsel), which mirrors the proposed changes, becomes effective upon signature by Mayor Bowser and has a 90 day sunset provision. As this is just one of many minimum wage increase initiatives popping up across the nation, employers should remain on alert and frequently evaluate the pay structures being used in each of their work locations to account for such developments.

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