District of Columbia Employment Law Update – June 2016

District of Columbia

Minimum Wage Increase

Effective July 1, 2016, the minimum wage in the District of Columbia is $11.50 per hour.

Read the Minimum Wage Increase Public Notice

Fair Shot Minimum Wage Act

On June 21, 2016, the Council of the District of Columbia approved the Fair Shot Minimum Wage Act (B21-712) minimum wage. The bill increases the district’s minimum wage in the following phases:

  • Effective July 1, 2017, $12.50 per hour.
  • Effective July 1, 2018, $13.25 per hour.
  • Effective July 1, 2019, $14 per hour.
  • Effective July 1, 2020, $15 per hour.
  • Effective July 1, 2021, the minimum wage will increase in proportion to the annual average increase, if any, in the cost of living, based on the Consumer Price Index for All Urban Consumers in the Washington Metropolitan Statistical Area published by the Bureau of Labor Statistics for the previous calendar year.

In any year where the federal minimum wage is higher than the minimum wage in the District of Columbia, the District minimum wage would increase to the U.S. minimum wage plus $1.

The bill also increases the minimum hourly wage for tipped employees as follows:

  • Effective July 1, 2017, $3.33 per hour.
  • Effective July 1, 2018, $3.89 per hour.
  • Effective July 1, 2019, $4.45 per hour.
  • Effective July 1, 2020, $5 per hour.
  • Effective July 1, 2021, the minimum wage for tipped employees would also be adjusted based on any increases in the cost of living.

The law also amends the District’s Living Wage Act of 2006 so that the minimum wage requirements would apply to contracts and agreements for government assistance if the minimum wage is ever higher than the living wage.

The Mayor is required to publish in the District of Columbia Register, on the Department of Employment Services website, and make available to employers a bulletin announcing the adjusted minimum hourly wage at least 30 days before an increase is scheduled to take effect.

Read DC B21-712