On August 31, 2020, the District of Columbia passed Act 23-407. This new law amended parts of the Tipped Wage Workers Fairness Amendment Act of 2018, passed October 23, 2018. 

Under Act 23-407, within 120 days of the effective day of the Act, the mayor must provide to employers a poster informing employees of certain employment rights under 11 different employment statutes, such as the right to be paid on time and at least minimum wage; receive a detailed pay stub; qualify for unpaid family and medical leave; be compensated for work-related illness or injury; and to remain free from discrimination and employer retaliation. Employers are required to place the poster “in a conspicuous place accessible to all employees,” including in all breakrooms and at all time clocks in the workplace.

Additionally, the Act requires the mayor to create a website stating individuals’ rights and benefits under various D.C. anti-discrimination laws. Employers are required to compile all the information provided on this website “into a single source, such as a binder” and place a copy at every location the required poster is displayed. Employers are responsible for updating this binder, at least monthly. Employers may be subject to a $100 fine for each day that an employer fails to comply with these requirements.

The Act further requires third-party payroll businesses that are required to process payroll for employers employing tipped workers and hotel employers employing tipped workers to “submit a quarterly wage report for the preceding calendar year to the Mayor no later than 30 days after the end of each calendar quarter.” The wage report must certify that each tipped worker was paid at least the minimum wage and contain specific information, including the average hourly wage received per week, total hours worked at or above the minimum hourly wage, and gross wages received per week. Additionally, if tips were shared, the report must include a copy of the employer’s tip-sharing policy. Employers may face a $500 penalty for each failure to timely submit the quarterly wage report, unless the employer proves it used a third-party payroll business to process the payroll.

This legislation will take effect after a 60-day period of congressional review.

For guidance regarding how this legislation affects your business, contact the employment law experts at General Counsel, PC today at 703-991-7973.