Earlier this week, the D.C. Council unanimously approved a measure to increase the minimum wage from $10.50 to $15 per hour. Mayor Muriel Bowser has already pledged to sign the measure when it reaches her desk later this summer.

Under the Fair Shot Minimum Wage Amendment Act of 2016 (the “Act”) (B21-712), the minimum wage for workers in the District will gradually increase until it hits $15 in 2020. The minimum wage for tipped workers will also increase, although by a smaller amount, reaching $5 per hour in 2020.  After 2020, successive annual minimum wage increases will be tied to inflation.

The District’s initiative follows recent minimum wage increases in Los Angeles, San Francisco, and Seattle, as well as in New York and California, all of which have enacted bills mandating $15.00 minimum wages. The current federal minimum wage is $7.25.

The Act must be submitted to Congress for a 30-day period of review before becoming law.