The Tipped Minimum Wage Increase Clarification Emergency Declaration Resolution of 2025 was introduced to address the urgent need to amend the Minimum Wage Act Revision Act of 1992. Specifically, it seeks to pause the scheduled increase of the tipped minimum wage to $12.00 per hour, which is set to take effect on July 1, 2025. This action comes in light of recent developments, including the Mayor's proposal to repeal Initiative Measure No. 82, which gradually raises the tipped minimum wage until it aligns with the standard minimum wage by July 1, 2027. The Council has received feedback from restaurant operators expressing confusion regarding the status of the upcoming wage increase due to the proposed repeal.

Additionally, the resolution highlights the potential impact of federal legislation, such as the No Tax on Tips Act, which could alter the tax treatment of tips for employees. To provide clarity for local businesses and allow the Council time to assess the Mayor's budget proposal and the implications of federal tax changes, the resolution emphasizes the necessity of pausing the tipped minimum wage increase. The Council has determined that these circumstances warrant immediate action, allowing the resolution to take effect without delay.