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The District's minimum wage has increased beginning July 1, 2014. Future federal minimum wage increases may affect the actual amount of the District's minimum wage, outlined below.
The Details
The District's minimum wage will increase to the greater of $1.00 above the federal minimum wage or:
- $9.50 per hour on July 1, 2014.
- $10.50 per hour on July 1, 2015.
- $11.50 per hour on July 1, 2016.
Beginning July 1, 2017 the District's minimum wage will be adjusted for inflation.
Note: Currently, the federal minimum wage is $7.25 per hour. If the federal minimum wage increases, D.C. employers must pay non-exempt employees at least $1.00 more than the federal minimum wage rate if that rate results in a higher minimum wage than the rates outlined above.
Reporting Requirement for Tipped Employees
The ordinance also requires employers of tipped employees to submit quarterly reports to the Mayor certifying that the employees were paid the required minimum wage.* The ordinance directs the Mayor to create an online portal for such reporting.
* Note: The effective date of the reporting requirement is not known at this time. Clients may wish to check the Department of Employment Services website for continued updates. We will also continue to monitor for any developments and will guide clients on the reporting obligation as additional information is released.
Practical impact
Employers in the District of Columbia must ensure that all non-exempt employees are paid at least the applicable minimum wage per hour. Employers should also ensure that an up-to-date minimum wage notice is posted in the workplace.
As always, feel free to contact your Human Resource Business Partner if you have any questions.
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