Summary of August 2025 Labor Law Updates for Washington, D.C.
Welcome to HKM Employment Attorneys’ monthly roundup of the latest Washington, D.C. labor law developments. This post is for employers, HR professionals, employees, and compliance leaders who want to stay current on changes affecting wages, worker protections, and regulatory obligations.
August 2025 brought significant changes in Washington, D.C., especially around tipped worker wages, pay transparency, and enforcement of wage & benefits obligations. Employers should assess their current payroll, hiring, and pay practices to ensure they align with the modified tipped wage schedule, the expanded pay stub transparency, and established wage history prohibitions. Labor and employment law remains a dynamic area in D.C. If you have questions or want to review how these changes affect your business or rights, feel free to contact HKM Employment Attorneys at https://hkm.com for guidance. Here are the key employment-law updates from August 2025 in D.C.
Compromise Amendment to Initiative 82 (Tipped Minimum Wage) — Legislation / City Budget Amendment
Date: August 25, 2025
Summary:
Initiative 82 was a voter-approved measure from 2022 that aimed to eliminate the tipped minimum wage and phase in full parity with non-tipped wages by July 2027. In August 2025, the D.C. Council passed a budget amendment that modifies Initiative 82: it freezes the tipped base wage at $10/hour through July 1, 2026. After July 2026, the tipped wage will be tied to a percentage of the regular minimum wage: 56% initially, rising over time (60% by July 2028, then increasing by increments every couple of years until reaching 75% by July 2034). The amendment also includes new pay transparency requirements: starting January 1, 2026, employers will need to include on pay stubs all sources of an employee’s compensation (tips, commissions, service charges, bonuses, etc.), not just the base wage. It directs the D.C. Chief Financial Officer to conduct periodic studies on the impacts of these changes on tipped workers and the restaurant industry.
Implications:
For employers in D.C., especially in the hospitality/restaurants sector, this is a signal to review payroll systems, tip accounting, and pay stub practices to ensure compliance with the new transparency rules well ahead of 2026. For tipped workers, full parity with minimum wage will now be delayed (originally to 2027), but the changes do provide a predictable schedule. The requirement to have clear pay stub breakdowns helps in auditing pay and tips. For policy watchers and labor advocacy, the amendment is controversial: some argue it undermines the voter-approved Initiative 82; others see it as necessary to balance restaurant industry viability with worker protections.
Attorney General’s Labor Day Report — Enforcement & Workers’ Rights Victories
Date: August 29, 2025
Summary:
The D.C. Office of the Attorney General (AG Brian L. Schwalb) released a Labor Day Report detailing that the office secured more than $6 million for workers in the District through enforcement actions, settlements, and other mechanisms. The report includes multiple settlements, including one involving a delivery company (DeliverThat) which was required to repay workers who had been deprived of wages and benefits.
Implications:
This demonstrates that enforcement is active in D.C., particularly in wage & hour violations and misclassification or failure to provide benefits. Employers should ensure they are compliant with minimum wage, wage payment timing, classification, and benefits law to avoid similar AG actions. These kinds of public reports also amplify reputational risk for employers; companies should anticipate scrutiny, especially in industries with lower wage workers (e.g. deliveries, service, hospitality).
Reminder: Paid Family & Medical Leave (PFML) Rate & Unemployment Benefits Update
Date: August 29, 2025
Summary:
A legal update/reminder was issued that PFML rates remain unchanged in D.C. as of late August. Also, unemployment benefits are expected to increase. The update suggests that employers should prepare for changes in unemployment benefits (costs, rates) as those increases take effect.
Implications:
Employers should verify their payroll deductions and budgeting for PFML remain correct. No rate change means existing contributions continue. The expected increase in unemployment benefits may affect employer costs (tax rates, reserve liabilities, etc.), so planning for those financial implications is prudent.
Other Notable Items
Wage-and‐Benefits Disclosures in Job Postings / Wage History Prohibitions under D.C. Law continue to be important due to the earlier enacted Wage Transparency Omnibus Amendment Act of 2023. That law requires job postings to include minimum and maximum projected pay, prohibits screening based on wage history, and requires disclosure of healthcare benefits before the first interview.
Business Advisory: The AG’s office issued advisories/business alerts reminding employers of their obligations under local law (especially around wages, benefits, worker misclassification). Employers should monitor DC OAG notices.
Conclusion: Looking Back on Washington, D.C. Labor Law Updates from August 2025
With local rulings interpreting the DC Human Rights Act and ramped-up scrutiny of discrimination, retaliation, wage disputes, ethics, and contract enforcement, navigating them requires skilled local counsel. At HKM Employment Attorneys in Washington, D.C., our experienced team—including specialists in DC Human Rights Act cases, wage and hour claims, retaliation, ethics investigations, employment contracts, and more—brings decades of experience and a commitment to no‑fee‑unless‑we‑win advocacy. Our D.C. clients emphasize the clarity, responsiveness, and local insight we provide, whether dealing with federal employees, agency staff, or private-sector professionals. If recent decisions have made you question your workplace rights, don’t wait—contact our Washington, D.C. office to explore how we can support you.
