The head of the Restaurant Association Metropolitan Washington is backing D.C. Mayor Muriel Bowser’s effort to repeal Initiative 82 鈥� the controversial 2022 law that created one wage scale for workers regardless of their industry.
Shawn Townsend, president and CEO of RAMW, told WTOP that he’s heard from multiple restaurant owners that they’ve had to adjust their business models every year since the bill was passed.
“The industry is suffering. Initiative 82 is one of the only things that the council and the mayor have control of changing the outcome of,” Townsend said.
Initiative 82, which passed in 2022 with nearly 74% voter approval, increases the tipped minimum wage from $5.35 to match that of non-tipped employees by 2027. Meaning that, on July 1, tipped workers will make $12 an hour and will eventually make the same minimum wage as all other workers in聽2027.
Bowser said the initiative will be repealed as part of her plan to transform the District’s economy.
“We haven’t arrived at these proposals lightly, but we know how important the restaurant industry is to D.C.,” she said at a press conference on Monday. “We will be putting incentives in place that are aggressive about attracting restaurants, attracting other businesses, and making sure that this industry can survive.”
Townsend cited a recent survey of over 200 restaurant operators that found 44% fear closure and 51% expect conditions to worsen this year. He said if D.C. raises the tipped worker minimum wage another dollar this July, there could be a $40,000-plus increase in labor costs.
“The proof is in the pudding,” he said. “We’re looking at one and a half closures per week at this point, and I don’t know any other way to explain the challenges that we’re facing, specific to Initiative 82.”
The D.C. Council would have to approve the repeal, which has not yet been formally introduced before the 13-member panel.
“I do think that it’s an opportunity for the council to say that Initiative 82, eliminating the tip credit system has been a mistake, and we acknowledge that, and we should try to correct it,” Townsend said. “I think it is political negligence 鈥� if they don’t do something.”
Townsend said getting the council on his organization’s side is “a work in progress.” Until Bowser’s newest budget proposal reaches the council, he’s unsure when they’ll be able to “start to have conversations.”
WTOP’s Nick Iannelli contributed to this report.
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