A Disappointing Day for Large Retail Employees but Hope for a Higher DC Minimum Wage Soon

Yesterday the DC Council returned from its summer recess and voted for a third and decisive time on the Large Retailer Accountability Act, which would require the nation’s largest retailers operating DC stores of at least 75,000 square feet to pay employees DC’s living wage of $12.50 an hour. Seven of the 13 councilmembers voted to overturn Mayor Gray’s veto, but that count fell two short of the nine votes needed. Though this important bill will not become law, the months-long debate focused the Council on our city’s growing income and opportunity gaps. Several bills were introduced yesterday to raise our city’s minimum wage, a direct result of these discussions.

The District’s Dime looks forward to the Council working quickly to address this important issue. As we noted in yesterday’s blog, new Census numbers show that nearly one in five DC residents live in poverty. That includes residents with children who work full-time at DC’s current minimum wage of $8.25 an hour; a 40-hour work week brings $330 a week or $17,160 a year.

Below is a summary of the proposed minimum wage bills as well as other significant legislation considered yesterday.

Minimum Wage
Though the Council did not override Mayor Gray’s veto of the living wage bill for large retailers, the legislation spurred interest in increasing earnings for DC’s lowest-paid workers. Four bills focused on raising the city’s minimum wage were introduced yesterday:

* A bill introduced by Councilmember David Catania (I-At-Large) would increase the minimum wage to $10.50 over three years. The bill would also allow restaurant wait staff and bartenders who work for both wages and tips to take paid sick days.

* A bill introduced by Councilmember Vincent Orange (D-At-Large) would increase the minimum wage to $12.50 an hour over the next four years and tie future increases to the consumer price index. The bill would also raise the minimum wage paid to tipped workers, such as waiters and waitresses, to 70 percent of the minimum wage. The minimum wage before tips for these workers currently is just $2.13 an hour.

* A bill introduced by Councilmember Tommy Wells (D-Ward 6) would increase the minimum wage to $10.25 over two years and tie future increases to the consumer price index. This bill also would increase the personal exemption and standard deduction in DC’s income tax, helping reduce the high taxes paid by DC’s low- and moderate-income families.

* A bill introduced by Councilmember Muriel Bowser (D-Ward 4) would create a commission to take a deeper look at DC’s minimum wage laws and report recommendations within nine months.

Expanding Paid Sick Leave
Chairman Mendelson (D) and Councilmember Barry (D-Ward 8 ) introduced the Paid Sick and Safe Leave Act of 2013. This bill would expand the city’s existing paid sick leave law to tipped restaurant workers, as well as shorten the time on the job needed to accrue sick leave.

DCFPI supports this important legislation and looks forward to its quick passage by the Council.

Tax Lien Sales Reform
In reaction to a recent series of stories in the Washington Post, Councilmember Evans (D-Ward 2) introduced emergency legislation to freeze tax lien sales for seniors, veterans, and disabled individuals, institute a cap of $1,500 on attorney fees, and prevent the auctioning off of any properties with debts less than $2,000. The bill passed unanimously.

Councilmember Cheh (D-Ward 3) also introduced the Tax Lien Compensation and Relief Reporting Emergency Act of 2013, which would provide compensation for homeowners who unfairly lost their homes through the District’s tax lien sales process. The bill directs the Office of the Chief Financial Officer’s Office of Integrity and Oversight to review circumstances of property tax liens for last 10 years and report findings and recommendations to the DC Council by Dec. 1st.

DCFPI looks forward to the Council’s work on these important issues this fall.

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