Several restaurants across Washington, have closed or announced plans to shut down in the months following the implementation of Initiative 82, a ballot measure that phases out the tipped minimum wage in the District. Initiative 82, approved by voters in November 2022, was passed by the DC Council in May 2023. This law increases th e tipped minimum wage in Washington from $5/hr to $10/hr.
The law also forces the wage to increase incrementally until it reaches the citywide minimum wage by 2027, which currently sits at $17.50/hr. According to Fox News, this law is taking a heavy toll on restaurants in the area; many restaurants report having to lay off workers and reconsider prices as they also face rising costs of goods.
Throughout the controversy of Initiative 82, many restaurant owners report their struggle to keep their restaurants open. Owners of these restaurants have cited higher operating costs, including increased wages under Initiative 82 as one factor among several influencing their decisions. Other cited challenges include inflation, potential tariffs and reduced post-pandemic foot traffic.
A survey published by the Restaurant Association of Metropolitan Washington (RAMW) in March 2025 revealed that many residents are selecting cheaper restaurants, ordering fewer dishes and skipping alcoholic drinks.
RAMW has been vocal about its stance against Initiative 82. The same survey revealed that more than 44% of full-service casual restaurants in Washington are likely to close within the coming year, with 11% stating that they are “very likely” to close within the same time frame.
Another alternative for restaurant owners is to move to another state, but this would force owners to start over entirely. A restaurant owner stated in the survey that “the greatest challenge for the upcoming year will simply be keeping our doors open.” RAMW summarizes that the “rapidly mounting financial pressures on restaurants” would be solved by repealing Initiative 82.
On the other hand, residents and workers say that the law significantly helps make rent, food and other necessities more accessible. One Fair Wage, the workers’ union that helped draft the law, notes that more than 30 new restaurants have opened in Washington since the beginning of the year despite the law.
Freshman Kimi Saad said she believes that while “it is bad that restaurants are closing, I believe that it is for a good reason and the workers deserve to be paid well.”
One member of the union, Blake Vincent, noted that his bar has seen a five to ten percent increase in customers despite higher prices and that a repeal of the law would be devastating for him and his co-workers. “[The potential repeal of the law] scares me because the people I work with depend on a living wage in order to live [and to]pay their rent,” he said.
Angelo Greco, spokesperson for One Fair Wage, expressed his disdain for the RAMW’s actions against the law, stating that RAMW is trying to “undermine the hard-won wage gains of another group — workers who are… among the most vulnerable in the District,” he said. He notes Initiative 82’s overwhelming support from voters and that “[a]ny attempt to repeal it is not just opportunistic — it is undemocratic and dangerous.”
Initiative 82 remains in effect and continues to change the economic landscape for restaurants and tipped workers in Washington A statement from the Office of the Deputy Mayor for Planning and Economic Development said, “[w]e recognize the challenges that many DC businesses are facing [but] we must also advance a growth agenda that makes it easier to do business here.”
