Washington D.C. To Raise Minimum Wage To $15/Hour By 2020

Image courtesy of Ryan McFarland

While companies like Target, Walmart, and IKEA have been announcing increases to their employee minimum wage one by one, some cities — and states — have take it upon themselves to approve across the board wage increases for residents. Joining the list that already includes Seattle, Los Angeles, and the state of California, the Washington, D.C. council approved a measure that would raise the minimum wage to $15/hour by 2020. 

The Washington Business Journal reports that the council voted unanimously to increase the minimum wage from its current $10.50/hour to $15/hour though a series of increases.

Tuesday’s approval of the measure is just the first step for the city. A second vote will take place at the end of the month, and the city’s mayor has already committed to signing the bill if it is approved a second time calling the measure “a big step forward.”

In addition to hourly workers receiving a pay increase under the measure, tipped minimum wage employees will also see a new pay rate, the Washington Business Journal reports. The tipped minimum wage in D.C. will jump from $2.77/hour to $5/hour by 2020.

After 2020, both tipped and hourly wages will be tied to inflation.

The council’s approval of the measure brings to end a ballot initiative that would have raised both the tipped and hourly minimum wage to $15/hour, the Washington Business Journal reports, noting that supporters of that initiative say they support the legislation.

Still, some in the city raised concerns about the measure. CEO of the D.C. Chamber of Commerce, Margaret Singleton, tells the Washington Business Journal that her group is worried the increased wages would have an adverse effect on the city, driving businesses out.

$15 minimum wage clears the D.C. Council [Washington Business Journal]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.