Virginia minimum wage to increase to $12 starting Jan. 1; DC's Initiative 82 going into effect in 2023

The minimum wage in Virginia will increase to $12 an hour on Jan. 1, and D.C.'s recently passed Initiative 82 will go into effect in 2023, raising the minimum wage for tipped workers to $6 an hour.

Virginia's minimum wage increase is part of a law passed in 2020 that raises the minimum wage gradually until it reaches $15 an hour in 2026. The current minimum wage in Virginia is $11 an hour.

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Here is the schedule for Virginia's minimum wage increases:

- From January 2023 to January 2025: $12

- From January 2025 to January 2026: $13.50

- From January 2026 to January 2027: $15

After Jan. 1, 2027, the minimum wage will be $15 an hour.

Meanwhile, in D.C., voters passed Initiative 82 in November which will require D.C. employers to pay $16.10 an hour to tipped employees regardless of how much they earn in gratuity.

Currently, tipped workers make $5.35 an hour as long as they make enough tips to meet the $16.10 threshold. The new pay increase will be phased in over five years. 

On Jan. 1, 2023, the minimum wage for tipped workers is slated to increase to $6 an hour. However, the act can only take effect after a 30-day period of congressional review, which has not yet taken place.

READ MORE: Initiative 82 passes: DC tipped workers to be paid minimum wage

Here is the schedule for Initiative 82's minimum wage increases, according to the legislative text:

- $6 per hour by Jan. 1, 2023

- $8 per hour by July 1, 2023

- $10 per hour by July 1, 2024

- $12 per hour by July 1, 2025

- $14 per hour by July 1, 2026

- Equal to non-tipped workers by July 1, 2027

Restaurant servers, bartenders, bar backs, nail salon workers and parking attendants are all examples of who could be impacted.