In June 2018, Washington DC held a referendum on whether to do away with its two-tier minimum wage. DC’s standard minimum wage is $12.50 an hour for most workers but only $3.33 an hour for tipped workers (e.g., bartenders, waiters). The referendum would increase the tipped minimum to the standard minimum by 2026. Customers would then likely stop tipping and restaurants would likely add a service fee to cover the higher labor cost.
The referendum passed, 55-45%, with 10% of registered voters turning out for the off-year election. Polling indicates that the majority of voters supported the measure out of fairness to workers. In October, however, the District Council reversed the decision (which they are legally allowed to do) citing misleading ballot language and that most people really didn’t understand the issue. Surveys confirmed that voters didn’t realize that most tipped workers already make $20-40 an hour and that employers are required to make up the difference if the standard minimum is not attained. Neither did voters realize that most service industry workers opposed the bill and that it had been introduced by a New York-based labor rights group seeking to reform minimum wage laws across the country. In December, a judge blocked this group’s attempt at a second referendum, citing they took too long to collect signatures.
This is a prime example of how not to do a referendum. The measure was decided by a dearth of citizens, who did not understand the issue and were confused by the ballot. The local council then overturned the vote, making referendums advisory at best. There was a call for another referendum before the ink dried on the first one, and that was blocked on a technicality. All of this indicates a city that does not take referendums seriously.
One might think that referendums were not meant to be taken seriously. However, they are becoming an increasing part of governance. Societies would be wise to figure out on how to do them well.
References:
Washingtonian, “Everything You Need to Know About Initiative 77 and the Tipped Minimum Wage,” 3 May 2018.
WAMU, “DC Voters Approve Initiative 77 , Ballot Measure That Eliminates Tipped Wage,” 19 Jun 2018.
Michael Saltsman, “The tipped wage proposal confused voter,” Washington Post op-ed, 9 Sep 2018, C4.
WTOP, “DC Council votes to overturn Initiative 77,” 2 Oct 2018.
Washington Post, “Judge halts effort to put Initiative 77 wage back on DC ballot,” 12 Dec 2018.
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