Understanding the Impact of I-82 on Full-Service Restaurant Employment in Washington
Explore the effects of I-82, a referendum that phased out the tip credit in Washington, on full-service restaurant employment. Learn about the employment data, economic impacts, and industry reactions.
Examining the Employment Data
The passage of I-82, with a significant majority of 74% in the 2022 referendum, initiated the process of phasing out the tip credit in May 2023. However, contrary to expectations, employment data from the Bureau of Labor Statistics reveals that the impact on full-service restaurant employment in Washington has been nuanced. Analysis through May 2025 demonstrates that on both year-over-year and two-year trailing bases, full-service restaurant employment either increased or remained stable.
Economic Impacts and Trends
While there was a minor shortfall in full-service sector employment in June 2025 compared to the previous year, it was not significant enough to attribute directly to I-82. The economic landscape in Washington has been more notably affected by federal spending cuts, leading to a decline of 6,000 jobs between June 2024 and June 2025. This shift has also been reflected in the District's highest unemployment rate of 5.9% since January 2022.
Industry Reactions and Responses
The response from key players in the restaurant industry diverges regarding the impact of I-82. The National Restaurant Association (NRA) lauded the passage of the amendment that maintained a 25% tip credit, citing it as a bipartisan win supporting the tip wage. On the other hand, groups like One Fair Wage criticized the measure as an infringement on economic justice and democratic principles, calling for reinstatement through potential avenues like referendums and recalls.