District of Columbia Attorney General Brian L. Schwalb has issued a detailed business advisory outlining the legal obligations of restaurants when it comes to paying employees, managing tips, offering paid leave, and maintaining proper records.
The advisory is directed at ensuring the rights of restaurant workers are fully protected under D.C. law.
Schwalb said the restaurant industry plays a critical role in the city’s economy and culture, and that those working in it must be treated fairly.
“The District is home to a vibrant, diverse restaurant industry, and because restaurant workers play such a critical role supporting our local culture and economy, D.C. laws appropriately protect their rights,” the attorney general said. “This guidance advances my Office’s commitment to ensuring that restaurant workers are treated fairly and receive all the wages they earn and the benefits they are entitled to under D.C. law, and that all restaurants compete on a level playing field.”
As of July 1, 2025, the District’s minimum wage is $17.95 per hour. The tipped minimum wage is $12.00 per hour, and employers who pay that amount must ensure workers receive enough tips to bring their total hourly pay to at least $17.95.
D.C. law requires overtime pay for hours worked over 40 in a week, at a rate of one and a half times the employee’s base pay, unless the worker is exempt under specific legal standards. Simply paying a salary does not exempt an employee from overtime.
Employers must pay employees at least twice a month and provide itemized pay stubs. Each stub must reflect base pay, hours worked, commission, incentive pay, overtime, tips, and any other additions or deductions. Employers must also make appropriate payroll tax withholdings and keep payroll records that include the employee’s name, address, occupation, rate of pay, and daily and weekly hours worked.
Tip pooling is allowed, but only among employees who customarily receive tips. Managers and supervisors are prohibited from participating in tip pools. If tips paid by credit card are subject to processing fees, employers must disclose to employees what percentage of the tip is reduced. Written notice of tip-pooling policies must be provided to employees and displayed in the workplace.
Restaurant employers that fail to comply with these laws may face damages equal to three times the amount of unpaid wages and fines ranging from $50 to $100 per violation. Additional penalties apply for recordkeeping and notice violations.
The advisory also includes requirements under the District’s Accrued Sick and Safe Leave Act. Employers with 100 or more employees must provide up to seven days of paid leave per year. Those with 25 to 99 employees must provide up to five days, and employers with fewer than 25 must provide up to three days. All employees, regardless of full-time or part-time status, begin accruing leave upon employment and may use it after 90 days. Employers must keep records of leave accrued and used and may not retaliate against employees who take paid sick leave.
The advisory also reminds employers of their obligations under the District’s Universal Paid Leave Act. Workers are eligible for paid leave related to childbirth, adoption, their own serious health condition, or that of a family member. Employers must notify workers of these rights at hiring and on an annual basis.
It is illegal to interfere with or retaliate against an employee for requesting or taking leave under this law.
Shawn Townsend, president and CEO of the Restaurant Association of Metropolitan Washington (RAMW), said the industry is committed to doing right by its workers.
“D.C.’s restaurant industry is one of the city’s largest private employers, and operators continue to be committed to creating fair, lawful, and supportive workplaces for their teams,” Townsend said. “We appreciate the Office of the Attorney General’s effort to provide clear, accessible guidance on complex employment laws, so owners and managers can focus on doing what they do best — serving their guests, supporting their employees, and strengthening their neighborhoods.”
For more information, employers are encouraged to consult the full text of the District’s Minimum Wage Revision Act, Wage Payment and Collection Law, Accrued Sick and Safe Leave Law, and Universal Paid Leave requirements.