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DC Minimum Wage: $18.40 an Hour, $10.30 Tipped and the July Rise

The DC minimum wage is $18.40 an hour as of October 2026, up from $17.95 on July 1, 2026, and it applies to every employer regardless of size. Tipped employees in the District get a base wage of $10.30 an hour, and the employer must make up any gap if tips don't bring them to $18.40.

The District's rate is the highest basic rate in the U.S. Department of Labor's state table. This page draws on the Department of Employment Services' 2026 increase notice and wage-hour page, the Office of the Attorney General's wage and hour guide, and the federal state, tipped and payday tables, all read in October 2026.

DC rates in one table

RuleDistrict of Columbia (as of October 2026)
Minimum wage$18.40 an hour
Tipped base wage$10.30 an hour
Maximum tip credit$8.10 an hour
Living wage rate$18.40 an hour
When it changesEvery July 1
OvertimeAfter 40 hours a week

Why DC changes in July

Most states move their rate in January. The District moves on July 1, under the Fair Shot Minimum Wage Amendment Act of 2016, and the increase follows the Consumer Price Index. The 2026 notice says the index rose by 2.4% in the Washington metropolitan area in 2025, which took the rate from $17.95 to $18.40. A payroll calendar set for January will be six months out of step.

The tipped wage is climbing

This is the change most employers outside DC haven't caught. The Attorney General's office says the tipped minimum is a percentage of the standard minimum wage, and that percentage rises every two years until it caps at 75% in 2034. The federal tipped table describes today's rule as a cash wage of at least 56% of the standard minimum, with the rest claimed as tip credit.

To pay the tipped rate at all, a DC employer has to meet a list of conditions. The Attorney General's guide includes these:

  1. Make sure wages plus tips reach the full minimum for every hour worked.
  2. Give tipped staff pay stubs that show employer wages and tips separately, with cash and card tips split.
  3. Tell employees about D.C. Code section 32-1003(f), the tipped minimum wage law.
  4. Tell employees how much card tips are reduced by card fees.
  5. Let staff keep their tips, or run a tip pool limited to tipped staff, with the policy given to everyone and posted at work.

Managers and supervisors can't share a tip pool earned by servers and bartenders. My guide to tip pooling explains how pools work elsewhere.

What else DC employers must do

The District's rules go well past the hourly rate. The Attorney General's office says employers must pay on a regular payday at least twice a month, give itemised pay stubs each payday, keep records of each employee's rate, pay and precise hours, and give written notice of any pay change or claimed overtime exemption. Salaried staff must earn at least what they'd get at the hourly minimum.

DC also bans non-compete agreements for most employees. The wage-hour office says that from January 1, 2026 the ban covers employees earning less than $162,164 and medical specialists earning less than $270,274. My guide to non-compete agreements covers how other places handle them.

DC against Maryland and Virginia

JurisdictionBasic minimum wage (as of October 2026)
District of Columbia$18.40
Maryland$15.00
Virginia$12.77
Federal$7.25

A business with staff in all three runs three pay floors, and the District's is the highest by some way.

How DC's rate climbed

YearDC rate (federal history table)
2020$15.00
2021$15.20
2022$16.10
2023$17.00
2024$17.50
From July 1, 2026$18.40

Mistakes DC employers make

  • Updating pay in January instead of July 1.
  • Using a tipped rate without the disaggregated pay stubs the law requires.
  • Letting managers share the servers' tip pool.
  • Paying monthly, when the District requires paydays at least twice a month.
  • Forgetting to display the new minimum wage poster, which every covered employer must post.
  • Keeping a non-compete in a contract for someone under the pay threshold.

Federal rules that sit underneath

The District's law sets the rate, but federal rules still apply on top. The U.S. Department of Labor's reference guide says the Fair Labor Standards Act sets time and a half after 40 hours for non-exempt staff and doesn't limit the hours an employee aged 16 or over can be scheduled. The District's wage-hour office notes that employers are generally subject to both DC and federal child labor rules, and following a looser DC rule can still break federal law.

The Office of Wage-Hour runs compliance audits and recovers unpaid wages, either administratively or through court action. It also offers a Minimum Wage Tip Portal and the required postings for employers.

My verdict

The District has the highest basic minimum wage in the federal table and some of the most detailed paperwork rules to go with it. Plan for $18.40 now, a rise every July 1, and a tipped wage that keeps closing the gap until 2034. If you run hospitality payroll in DC, the pay stub and tip pool rules matter as much as the rate itself.

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Frequently asked questions

What is the DC minimum wage?

It's $18.40 an hour as of October 2026, effective July 1, 2026, for all employers regardless of size.

What is the tipped minimum wage in DC?

The tipped base wage is $10.30 an hour, and the employer must make up any gap to $18.40.

When does the DC minimum wage go up?

Every July 1, in line with the Consumer Price Index.

Is DC's tipped wage going to rise?

Yes. The Attorney General's office says the tipped percentage rises every two years until it caps at 75% in 2034.

How often must DC employers pay staff?

At least twice a month, on a regular payday.

Does DC ban non-compete agreements?

Yes, for employees earning less than $162,164 and medical specialists earning less than $270,274 from January 1, 2026.

Is the DC minimum wage higher than Maryland's?

Yes. DC pays $18.40 an hour and Maryland $15.00 as of October 2026.

Can managers share tips in DC?

No. Managers and supervisors can't take part in a tip pool earned by servers and bartenders.

Do small DC businesses pay a lower minimum wage?

No. The Department of Employment Services says the $18.40 rate applies to all workers regardless of the size of the employer.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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