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national restaurant association
Bowing to Restaurant Lobby, DC Guts Voter-Approved Plan to End Subminimum Wage for Tipped Workers
"Call it what it is: a pay cut and a betrayal of the working people," said One Fair Wage.
Jul 31, 2025
With backing from the restaurant lobby, the Washington, D.C. city council voted Monday to gut plans to raise wages for tipped workers, which had already been approved by the public.
It's the second time the council has overturned a wage increase for tipped workers that the public voted for, having already done so once in 2018.
Under federal law, tipped workers are allowed to be paid a much lower minimum wage—just $2.13 per hour compared with $7.25 for nontipped workers. Tipped workers are, consequentially, more likely to live in poverty.
This is the case in Washington, D.C., where, according to data from the Bureau of Labor Statistics analyzed by the Economic Policy Institute, 7.7% of tipped workers live in poverty compared to 2.6% of nontipped workers.
In 2022, D.C. voters overwhelmingly voted to address this problem, supporting Initiative 82, which would have gradually raised the minimum wage for tipped workers—just over $5.35 an hour at the time—to match what other workers receive by 2027.
In 2022, D.C.'s standard minimum wage—which increases each year pegged to inflation—was $16.10. As of 2025, it has increased to $17.95.
As the initiative to raise the tipped minimum wage began, restaurant industry lobbying groups like the Restaurant Association of Metropolitan Washington (RAMW) fought tooth-and-nail to roll it back.
In Jacobin, Raeghn Draper wrote that this group, and others like it around the country, "claim to speak on behalf of restaurant workers, but they are not worker organizations."
Instead, Draper wrote, "They are extensions of the National Restaurant Association (NRA), an industry group historically aligned with large corporate chains like McDonald's, Taco Bell, and Olive Garden—none exactly known for their commitment to workers' rights or well-being."
These groups waged an aggressive disinformation campaign, claiming that by phasing out the subminimum wage, restaurants, crushed by their increasing operating costs, would be forced to close en masse.
The RAMW even touted a survey of its own member restaurants purporting to show that 44% of full-service casual restaurants would have no choice but to close their doors by the end of 2025 due to the policy.
As Draper points out, citing data from an independent investigation by D.C.'s Office of the Budget Director, "the number of D.C. restaurant closures in 2024 did rise slightly compared to the previous year, but restaurant openings also increased, outpacing closures by a margin of two to one."
A study by the EPI likewise found that—despite industry claims that the higher wage requirements were forcing restaurants to lay off their employees—D.C. was seeing more employment growth than other towns in the region without requirements to raise wages.
But media outlets uncritically reported the restaurant industry's narrative about mass closures, and their attempts to "manufacture a crisis," as Draper says, paid off.
While making public appearances with restaurant industry lobbyists, Democratic Mayor Muriel Bowser signed legislation halting the wage increases in June—freezing the tipped minimum wage at $10 an hour. She pushed for a full repeal, which would have knocked the tipped wage back down to $8 an hour. But the city council voted it down.
On Monday, despite fierce protests from workers and unions, the city council voted 7-5 to freeze the tipped wage at $10 until July 2026, when it will increase by a measly five cents. They also voted to dramatically slow the tipped wage increases to just 5% each year until 2034, when it will be capped at 75% of the standard minimum wage.
Members of the council, as well as many media outlets, including Axios and The Washington Post, described the decision as a "compromise" between employers and workers. RAMW, which lamented that it was "not a full repeal," has portrayed it that way, though it nevertheless described it as a "win for the industry."
Fair wage activists, however, described it not as a compromise, but an assault on a hard-won democratic victory.
"In what world is this a compromise?" asked One Fair Wage, one of the groups that campaigned for the initiative. "Call it what it is: a pay cut and a betrayal of the working people."
"D.C. Council just voted to overturn the will of the people and freeze wages for tipped workers," said the Fair Budget Coalition in a post on X following the vote. "As rents and other costs rise, it is a CHOICE to maintain a subminimum wage for struggling D.C. residents."
According to EPI, a person living in Washington, D.C. needs to earn just under $31 an hour to afford the cost of living. The average wage paid to tipped workers like bartenders, waiters, and waitresses falls several dollars short of this.
"The voters told us what they wanted when they voted overwhelmingly for I-82—twice—and this is not it," said Brianne Nadeau, one of the council members who voted against reversing the wage hikes. "Restaurant workers and the organizations that represent them have been fighting this battle for wage protections for years, and they shouldn't have to keep fighting it. And this council should not keep on telling the voters they don't know what's best for themselves."
"The council chose corporate lobbyists over tipped workers," said One Fair Wage. To the council members who voted for it, they said: "We see you. We won't forget."
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Low-Wage Workers to Democratic Leaders: Fight for Us or Face 'Consequences'
"Democrats must act now to protect workers and show that they are fighting for the people who need them most," said one economic justice leader.
Nov 19, 2024
With Democratic leaders grappling with how to move forward following this month's devastating electoral losses and governors in the party moving to resist President-elect Donald Trump's policies, low-wage workers are planning on Wednesday to send a clear message to several Democrat-led statehouses: Prioritize workers and fair wages, or "face the consequences."
The national economic justice group One Fair Wage, which works closely with restaurant industry and other service workers, is organizing direct actions in Detroit, New York, and Springfield, Illinois, demanding that Democratic leaders in blue states "act decisively" to protect working people from Trump's anti-regulation, pro-corporate agenda.
The group said tipped service workers, advocates, and labor leaders will take part in the actions, in which participants will deliver an open letter calling for the passage of legislation to raise the minimum wage and eliminate subminimum wages.
"Workers in blue states are raising their voices because they cannot afford to wait any longer," said Saru Jayaraman, co-founder and president of One Fair Wage. "With a cost-of-living crisis squeezing families and an anti-worker Trump administration on the horizon, Democratic leaders must act boldly to protect workers and provide economic security. If they fail to prioritize wages and worker protections, they risk losing the trust—and the votes—of the very people they need to win."
The actions come after preliminary demographic data from the election showed working-class voters from a variety of racial backgrounds swung toward Trump. Two-thirds of Trump voters said they had to cut back on groceries because of high prices, according to a New York Times/Siena College survey, compared to only a third of people who supported Vice President Kamala Harris. Latino-majority counties shifted toward the Republican former president by 13 percentage points, and Black-majority counties did the same by about three points.
"Last week's electoral results made one thing clear: Voters overwhelmingly prioritize wages and affordability."
"Last week's electoral results made one thing clear: Voters overwhelmingly prioritize wages and affordability," said Jayaraman.
The actions were planned amid reports that U.S. Ambassador to Japan Rahm Emanuel, a key adviser to former President Barack Obama, is among those considering a run for chair of the Democratic National Committee—a plan that one former adviser to Sen. Bernie Sanders (I-Vt.) said seemed aimed at ensuring "the Democratic Party continues to lose working-class voters." Other possible contenders include former Maryland Gov. Martin O'Malley and, reportedly, progressive Wisconsin Democratic Party Chair Ben Wikler.
One Fair Wage said that following Democratic losses across the country, and with Republicans set to take control of the White House and both chambers of Congress in January, Democratic leaders at the state level must "act boldly on behalf of working families."
In Michigan, workers will call on Gov. Gretchen Whitmer to uphold the state Supreme Court's decision to raise the minimum wage and eliminate subminimum wages for tipped workers.
At the Illinois state Capitol, advocates plan to push for statewide legislation to extend fair wages for all workers, building on Chicago's minimum wage reforms.
In New York, One Fair Wage will lead the call for Gov. Kathy Hochul to "safeguard tipped and immigrant workers from the looming anti-worker policies of the incoming Trump administration."
The workers and supporters will deliver their demands to state lawmakers as well as hold "solidarity turkey giveaways for struggling families let down by elected officials."
Since the election, some Democratic governors have pledged to resist Trump's far-right agenda. California Gov. Gavin Newsom called a special legislative session aimed at "Trump-proofing" the state by finalizing climate measures and protecting reproductive and other kinds of healthcare. Govs. JB Pritzker of Illinois and Jared Polis of Colorado announced a coalition that will resist Trump's deportation plan and reinforce key state institutions.
The governors' plans have not specifically mentioned efforts to protect workers from Trump's policies. The president-elect attempted to pass regulations that would make tips the property of employers during his last term, and the National Restaurant Association has pledged to revive such efforts in the next four years.
"There's a glaring omission in these efforts: low-wage and tipped workers," Angelo Greco, a political strategist working with One Fair Wage, told Common Dreams. "When Democrats say they will fight for the most vulnerable, who exactly does that include if not the people earning the lowest wages and facing the greatest economic instability?"
"Tipped workers—many of whom are women, people of color, and immigrants—continue to be paid below the minimum wage in a system rooted in the legacy of slavery," Greco added. "They face Trump's imminent rollback of Biden-era workplace protections, and now restaurant workers are on the front lines of his anti-labor rampage. If governors truly want to protect workers, they must include tipped workers in their efforts."
Jayaraman called on Democrats to "act now to protect workers and show that they are fighting for the people who need them most. Ignoring these demands will lead to alienated voters and further political losses."
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Restaurant Workers Are Fighting to End Rampant Exploitation
This movement is growing rapidly as workers across the country demand livable wages.
Apr 30, 2024
Growing up, I looked up to my father and aunt, who began restaurant industry careers after immigrating from Eritrea in the 1970s. When I started working, a restaurant job was a natural choice.
While I took great pride in my work, I struggled with the conditions. I was often on my feet for 10-12 hour shifts six days a week, had no access to affordable healthcare, was wholly unaware of my worker rights, and constantly worried about money.
Through laws rooted in slavery, employers are allowed to pay restaurant servers a sub-minimum wage. At the federal level, this wage has been stuck at $2.13 per hour since 1991. If tips don’t raise your hourly pay to at least the regular minimum wage, your employer is supposed to make up the difference. But non-compliance is rampant.
A recent report by the Institute for Policy Studies and Americans for Tax Fairness shows that while Darden was fighting minimum wage increases for their servers, they paid their top five executives a total of $120 million between 2018 and 2022.
When I started as a server in 2018, my hourly wage was $3.89. During the five-month off season, I struggled to make the regular minimum wage, especially if I had a section with empty tables. When I got injured on the job and asked about workers compensation, my manager fired me.
I later experienced what I believed to be wage theft and workplace discrimination. That’s when I joined the movement to end restaurant worker exploitation.
This movement is growing rapidly as workers across the country demand livable wages. Organizers are working to put minimum wage hikes for tipped workers on November ballots in several states, including Ohio, Maine, Maryland, and Massachusetts. A dozen states are considering legislation to do the same.
I can tell you the opposition to these efforts will be fierce.
I live in Washington, D.C. In 2018, I cheered when D.C. voters passed a ballot initiative to phase out the local sub-minimum wage for tipped workers. But the city council blocked the wage hike, forcing organizers to mount another successful ballot initiative in 2022.
D.C. finally began phasing out the sub-minimum tipped wage in 2023. And yet many restaurant owners are still undercutting workers by charging 20% “service fees” that most customers mistakenly think go to their servers, so they’re likely to tip less.
The National Restaurant Association, with affiliates in every state, is the leading driver of these anti-worker efforts. The lobby group’s members include powerful corporations intent on shifting business risks and costs onto employees, customers, and taxpayers.
I used to work for one of them. In 2019, I had a job at Yard House, which is part of the Darden empire along with Olive Garden and seven other chains.
I faced a common challenge for sports bar servers: Groups would come in to watch a game for several hours, only to leave a modest tip on a $30 bill. Inexperienced managers would also often send me home as soon as I arrived because of overstaffing. On those nights, my pay would be less than my transportation cost.
A recent report by the Institute for Policy Studies and Americans for Tax Fairness shows that while Darden was fighting minimum wage increases for their servers, they paid their top five executives a total of $120 million between 2018 and 2022. That’s four times as much as they paid in federal taxes, despite strong profits.
After college graduation, I decided to work full-time as a labor organizer. With so many immigrants relying on restaurants for jobs, this struggle feels personal. But we’d all be better off if corporations like Darden had to share their profits more equitably.
Workers could achieve a better life and restaurants would have less turnover. And for customers, the food will taste even better if they know the hard-working professionals who serve their meals are treated with respect.
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