In 2022, Washington, D.C. passed Initiative 82, which began eliminating the tip credit in the city, making it the first jurisdiction to do so in over 20 years.
The initiative began phasing out the tip credit in May 2023, and the results were bad for employees, customers, and restaurant operators.
The impact of Initiative 82 was so negative that District of Columbia Mayor Muriel Bowser called on the D.C. Council to take action and stop the harmful consequences of tip credit elimination. In July of 2025, the D.C. Council passed a compromise package to replace Initiative 82 and reinstate the tip credit.
This real-life example of tip credit elimination should serve as a cautionary tale to other jurisdictions around the country.
As you can see, tipping serves up opportunity for all and keeps the local dining scene vibrant. Support local dining establishments, restaurant jobs, and consumer choice by protecting the tip credit and preserving the tipped income system.
