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 inquiries from restaurant operators regarding the status of the upcoming wage increase, creating confusion amidst the proposed repeal.

Additionally, the resolution highlights the recent passage of the No Tax on Tips Act by the Senate, which introduces new tax deductions for cash tips, further complicating the financial landscape for tipped wage employees. To provide clarity for local businesses and allow the Council time to assess the implications of the Mayor's budget proposal and potential federal tax changes, the resolution emphasizes the necessity of immediate action to pause the tipped minimum wage increase. The Council has determined that these circumstances constitute an emergency, warranting the adoption of the amendment after a single reading.