The proposed resolution, known as the Tipped Minimum Wage Increase Clarification Emergency Declaration Resolution of 2025, aims to address the need for an immediate amendment to the Minimum Wage Act Revision Act of 1992. Specifically, it seeks to pause the scheduled increase of the tipped minimum wage, which is set to rise to at least $12.00 per hour on July 1, 2025, in light of recent developments regarding Initiative Measure No. 82. This initiative, which was certified by the District of Columbia Board of Elections, gradually phases out the tipped wage credit until tipped employees receive the full minimum wage by July 1, 2027. However, the Mayor's announcement of a budget proposal to repeal this initiative has created confusion among local restaurant operators about the status of the upcoming wage increase.

The resolution emphasizes the urgency of clarifying the situation for local businesses, especially given the potential changes in federal tax treatment of tips, as indicated by recent legislative actions in Congress. The Council believes that these circumstances warrant the immediate adoption of the Tipped Minimum Wage Increase Clarification Emergency Amendment Act of 2025 after a single reading, allowing for a pause on the wage increase while further evaluations and discussions take place.