Initiative 82 is a Mockery of Democracy
In November 2022, Washington, DC residents voted in favor of Initiative 82 (the District of Columbia Tip Credit Elimination Act of 2021), which eliminates the tipped minimum wage for servers, bartenders, and other tipped workers. A "yes" vote supported gradually increasing the tipped minimum wage, then $5.35 at the time, to match the standard minimum wage for all workers by 2027, with incremental raises each year. At the time, the gap between the minimum wage for tipped workers vs. all other workers was substantial since the minimum wage for all other workers was $16.10 and as of July 2025, it stands at $17.95. Because the initiative passed, employers have been required since May 2023 to ensure that tipped workers earn at least the full minimum wage, supplementing their pay if necessary. By 2027, the tipped minimum wage will be completely phased out in favor of a single, universal rate.
Debates around whether Initiative 82 has helped or hurt the service industry in Washington, DC are abundant, but what’s been largely overlooked is a deeper concern: the fairness of how this policy was decided. Initiative 82 represents a troubling example of governance. The broader public, many of whom had no direct stake or expertise in the service industry, imposed a new wage structure on a small, specific group of workers and businesses. The measure passed with nearly 74% of the vote, with 132,925 in favor compared to 46,861 against. Are we really to believe that nearly 180,000 voters fully understood the complexities of restaurant economics, tipping culture, and employment practices before casting their ballots?
Using a public vote to determine an individual’s wages is not what democracy is meant for. Instead, it’s a distortion of the process. In a market-based economy, we “vote” through the choices we make: the dollars we spend and the labor we provide. No one is forced to be a waiter, and no one is forced to dine out. These are voluntary exchanges, and they should be respected as such. When the entire voting population of Washington, DC is given the power to set the wages of a small segment of workers, it overrides the rights of those most directly involved—the tipped workers themselves, the business owners who employ them, and the customers who support them. Compensation in this sector should be determined by the market, not through a popular vote disconnected from the realities of the industry.
To be clear, some of the arguments in favor of Initiative 82 are compelling. Tipped workers often face harassment from customers who use tips as leverage, and a standard wage could reduce their dependence on such treatment. Wage theft is another serious concern in the industry and is less likely to occur with standardized pay structures. There’s no doubt that working in the service industry presents real challenges and that meaningful reform is needed. However, acknowledging those issues doesn’t mean the general public has the right to dictate how an entire sector conducts its core transactions. Wage theft, for example, is already illegal under DC’s labor laws. If it’s widespread, the proper response is to increase enforcement and oversight, not to overhaul the wage system through a popular vote.
Democracy should be about protecting individual rights and expanding them where they’re lacking, not about controlling voluntary exchanges between consenting parties. When we use the ballot box to interfere with basic market transactions, we risk losing sight of the proper role of government and the true value of democratic principles. In many ways, markets themselves are the purest form of democracy. Every day, people express their preferences through the choices they make such as where to shop, which products to buy, and what services to use. These decisions represent a form of continuous, decentralized participation and are arguably more reflective of individual will than political voting. Civic elections should be reserved for matters the market cannot adequately address such as national defense, criminal justice, or public infrastructure. When it comes to consensual economic activity, especially in industries as complex as the service sector, the marketplace, not a majority vote, should set the terms.
