District of Columbia tip pooling laws & tipped minimum wage
In District of Columbia, employers can pay tipped workers $10.30/hr as long as tips bring them to the $18.40 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $18.40/hr |
| Minimum cash wage for tipped workers | $10.30/hr |
| Maximum tip credit | $8.10/hr |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the District of Columbia labor department. Not legal advice.
What's specific to District of Columbia
Initiative 82 originally set the tip credit on a path to zero, but the Council amended it in July 2025: the tip credit is kept, and the tipped cash wage now rises to a cap of 75% of the full minimum wage by July 1, 2034 rather than reaching 100%. The minimum wage rose to $18.40 on July 1, 2026, with the tipped cash wage at $10.30 (56% of the full minimum). Both rates adjust each July 1.
DC raises its tipped cash wage each July under Initiative 82
Washington, DC voters passed Initiative 82 in 2022 to gradually raise the tipped cash wage until it matched the full minimum wage. The Council amended that in July 2025 — the tipped wage still rises every July, but it now stops at 75% of the full minimum rather than reaching 100%. The city’s minimum wage rose to $18.40 an hour on July 1, 2026, and both the regular and tipped rates adjust each July 1.
As of July 1, 2026 the tipped cash wage is $10.30 an hour, set at 56% of the full minimum wage. Your employer may still take a tip credit for the gap, but only if your tips bring you to at least $18.40 an hour for the week. If they do not, your employer owes the difference.
The tip credit is now capped rather than eliminated
In July 2025 the DC Council amended Initiative 82 and ended the path to elimination. Instead of the tip credit reaching zero in 2027 as the initiative set out, the tipped cash wage is now tied to a rising share of the full minimum wage: 56% from July 2026, then stepping up every two years until it reaches 75% on July 1, 2034 — and staying there. The tip credit is a permanent part of DC law unless the Council changes it again.
Because both the base minimum and the tipped percentage change on July 1, the dollar figure moves every year. Whatever the current step, the guarantee is the same: your cash wage plus tips must always reach the full DC minimum wage.
How to recover unpaid or withheld tips in DC
DC law requires your pay stub to itemize your wages, gratuities, and any service-charge amounts, which makes it easier to check whether you were paid correctly. Managers, supervisors, and owners may not keep any portion of your tips.
If your cash wage plus tips did not reach the minimum, or your employer withheld tips, you can file a complaint with the DC Department of Employment Services, Office of Wage-Hour Compliance. You may also contact the U.S. Department of Labor Wage and Hour Division.
Tip pooling in District of Columbia
District of Columbia follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $10.30/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it.
What this means for your tip-out
Because part of your legal wage in District of Columbia comes from tips, the employer's tip credit assumes those tips reached you. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
District of Columbia tip law FAQs
What is the tipped minimum wage in District of Columbia?
Employers in District of Columbia may pay tipped employees a cash wage of $10.30/hr and claim a tip credit of up to $8.10/hr toward the $18.40 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in District of Columbia?
District of Columbia follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $10.30/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in District of Columbia?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including District of Columbia. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
What is the DC tipped wage right now under Initiative 82?
As of July 1, 2026 the tipped cash wage is $10.30 an hour, equal to 56% of the $18.40 full minimum wage. Your tips must still bring you to at least $18.40 an hour, and both rates rise again the following July 1.
Is DC still getting rid of the tip credit?
No. Initiative 82 originally would have eliminated it by 2027, but the DC Council amended that in July 2025. The tipped wage is now tied to a rising share of the full minimum — 56% in 2026, increasing every two years to a cap of 75% on July 1, 2034 — and the tip credit remains in place after that rather than reaching zero.