Wage and Hour Laws

Minimum Hourly Wages

Regular Employees: Employees who do not receive tips must be paid at least the minimum wage, as indicated in the table below, which is $17.50 per hour beginning on July 1, 2024. The minimum wage generally increases every year on July 1st.
Salaried Employees: Salaried Employees are entitled to receive a salary that is equal to or greater than the amount they would receive if paid hourly at the minimum wage rate. Employers must also pay overtime on hours worked over 40 hours a week (see below) unless a worker’s job function fits within a specific exemption.
Tipped Employees: See below for Tipped Employees Hourly Wages.

The following table summarizes the District’s minimum hourly wage for most employees and tipped employees for the years 2020-2024.

Starting On	Most Regular Employees	Most Tipped Employees
July 1, 2022	$16.10	$5.35
July 1, 2023	$17.00	$8.00 ($6.00 as of January 1, 2023)
July 1, 2024	$17.50	$10.00

Note: Increases from July 1, 2021 on are linked to the % increase in the area Consumer Price Index.

In addition to paying the minimum hourly wage, District employers must:

Pay all employees on a regular payday at least twice a month;
Provide employees with itemized pay stubs each payday that separately report the following information:
- base rate of pay,
- hours worked at each rate of pay,
- commission pay,
- incentive pay,
- overtime pay,
- cash tips,
- credit card tips, and
- any other additions to or deductions from pay;
Make appropriate payroll tax withholdings from employee paychecks;
Maintain compliant payroll records including the following information:
- Each employee’s name, address, occupation, and date of birth (if under 19); and
- For each pay period, each employee’s rate of pay, the amount paid to each employee, and the precise times worked each day and workweek by the employee;
Provide employees with written notice any time there is a change to their rate of pay; and
Provide employees with written notice of any claimed overtime exemptions.

Where employers fail to follow these rules, they are liable for damages in the amount of wages owed, liquidated damages equal to three times the amount of wages owed, and penalties of $50-$100 per each violation. Employers may face additional penalties for recordkeeping and notice violations.

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Tipped Employees Hourly Wages

Employees who receive tips may be paid a lower “tipped” minimum wage, but only if their employer complies with all of the following:

The employer must ensure that each employee’s wages plus tips add up to at least the full minimum wage for every hour worked;
The employer must provide each tipped employee with disaggregated pay stubs, separately reporting wages paid by the employer and any tip amounts, and tip amounts must be disaggregated by cash tips and credit card tips (called a “tip-declaration form”);
The employer must notify the employee of the provisions of D.C. Code §32-1003(f) (the “tipped employee minimum wage” law);
The employer must notify the employee of the percentage by which tips paid via credit card will be reduced by credit card fees; and
The employer must ensure each employee keeps all tips they receive, or receives their fair share of money from a “pool” of tips received by all tipped employees. In order to “pool” tips, an employer also must:
- (a) Provide all employees with notice of the tip-pooling policy;
- (b) Post a copy of the tip-pooling policy in the workplace; and
- (c) Ensure that only employees who receive tips participate in the tip-pool. For example, managers and supervisors cannot participate in a tip pool earned by servers and bartenders.

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

The D.C. tipped minimum wage is being phased out over time. In November 2022, Ballot Initiative 82, or the “District of Columbia Tip Credit Elimination Act,” was passed by District voters. Under this law, the tipped minimum wage will increase annually until 2027, when it will become the full minimum wage. During the transition period, employers must continue to comply with all of the above requirements. After this change, the law will still require that employees keep all tips they receive, in addition to the minimum wage.

Starting On	Tipped Minimum Wage
July 1, 2023	$8.00
July 1, 2024	$10.00
July 1, 2025	$12.00
July 1, 2026	$14.00
July 1, 2027	The standard minimum wage

Who is required to pay minimum wage?

All employers, with the exception of the United States federal government, are required to abide by the District’s minimum wage laws. Employers include the District of Columbia government, and any individual, partnership, general contractor, subcontractor, association, corporation, business trust, or any person acting directly or indirectly in the interest of an employer in relation to an employee. See D.C Code §§ 32-1002(3), 1003.

Examples of employers under the District’s law may include, but are not limited to: restaurants and bars, retail stores, construction companies, hotels, health care providers, schools and institutions of higher learning, and District of Columbia governmental agencies.

Who is protected under the wage and hour laws?

Most employees in the District of Columbia are entitled to the District’s minimum wage. There are a few narrow exceptions to the minimum wage laws explained in more detail below.

A person is “employed in the District of Columbia” and entitled to the minimum wage if that person:
- regularly spends more than 50% of their working time in the District of Columbia; or
- the person’s employment is based in the District of Columbia and the person regularly spends a substantial amount of their working time in the District of Columbia and not more than 50% of their working time in any particular state. See D.C. Code § 32-1003(b).
Additionally, employees are entitled to the minimum wage for every hour worked in the District whenever they perform at least 2 hours of work in one workweek in the District for the same employer.
An employee’s immigration status does not affect their entitlement to a minimum wage.

A note on “employees” and “independent contractors.” Most workers qualify as employees under the District’s law, and are thus entitled to the District’s minimum wage protections. It is illegal for District employers to misclassify employees as independent contractors in order to avoid paying minimum wages and overtime pay, providing sick leave, or complying with any other employment laws. Learn more about Worker Misclassification below.

What hours count as work hours?

Hours of “work” for purposes of the minimum wage and overtime laws include all time an employee spends on the employer’s premises, or time spent “on duty” or at a prescribed location. That includes:

Training: Time spent in training that is required by the employer.
Travel: Time spent traveling for purposes of the employer’s business, such as travel between two work sites. Note that commuting - the travel time between your home and the job site - does not count as work time.
Repair, maintenance, and cleanup activities count as work. For example, if you are required to spend time cleaning up your workstation after your official work shift ends, you must be paid for the time spent cleaning up.

D.C. Code § 32-1002(10). See also Title 29 of the Code of Federal Regulations, Part 785, Hours Worked under the Fair Labor Standards Act of 1938, as amended.

Example

Joe works at a hospital. His schedule is listed below, with work hours highlighted in bold.

8:00 AM – 9:00 AM. Ride bus to hospital.
9:00 AM – 12:00 PM. Hospital training session (3 hours).
12:00 PM – 1:00 PM. Deliver package to doctor’s office across town (1 hour).
1:00 PM – 4:00 PM. Review and organize patient files (3 hours).
4:00 PM – 5:00 PM. Clean up desk and workspace for evening (1 hour).
5:00 PM – 6:00 PM. Ride bus home.

Altogether, for this day, Joe will have worked 8 work hours total.

Overtime Pay

Any employee working more than 40 hours per week is entitled to at least 1½ times the regular hourly pay for every hour over 40 worked in a week. D.C. Code §32-1003(c). Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Minimum Daily Wages

Unless you regularly work a shift that is less than four hours long, your employer must pay you for at least four hours of work for each day you report to work. See DCMR 7-907.

If you report to work but are sent home, your employer must pay you for four hours of work at the regular minimum wage.
If you report to work and are given less than four hours of work, your employer must pay you at your regular hourly rate for the hours worked, and at the regular minimum wage for the remainder of four hours not worked.

Example

Alex is paid $20 per hour at his job at a retail store, and his shifts are regularly longer than 4 hours. Because Alex’s shifts are regularly longer than 4 hours, he is entitled to a minimum daily wage under District law.

Alex shows up for work on Wednesday and is told the store only needs him to work for two hours. Alex works for 2 hours and goes home.

However, because Alex is entitled to a minimum daily wage, the employer must pay him for at least 4 hours of work.

For that day, the employer must pay Alex a total of $72.20 as follows:

$40 ($20/hour (Alex’s regular wage) for the 2 hours of actual work), plus

$32.20 ($16.10/hour (the minimum wage) for the 2 additional hours to meet the 4 hour pay total).

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Split Shift Wages

A split shift occurs when a worker works multiple, non-consecutive hours in a day. For example, if an employee works a 9AM-1PM morning shift and then a 5PM-9PM evening shift, that is a split shift. When work time is separated by a meal break of up to one hour, that does not count as a split shift.

For each day that an employee works a split shift, the employer must pay the employee one additional hour at the minimum wage. See DCMR 7-906.

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Paid Sick Leave

Workers are entitled to earn a certain amount of paid sick leave, depending on the size of their employer, under D.C. Code § 32-531.02. The chart below shows the rate of paid sick leave for small, medium, and large employers.

If your employer has this many employees:	Then you earn one hour of accrued paid sick leave per this number of hours worked:	Up to a maximum of this many days per year:
1-24 employees	87 hours	3 days
25-99 employees	43 hours	5 days
100 or more employees	37 hours	7 days

These rules apply equally to part-time and full-time employees. Every employee must be allowed to use their accrued paid sick leave after 90 days of employment. Employers are free to provide more accrued paid sick leave than the minimum required by law.

Employees can use paid sick leave for absences, including emergency absences, relating to mental or physical illnesses and any medical diagnosis or treatment. Employees can also use paid leave to care for sick family members, or to seek social or legal services if they are victim of stalking, domestic violence, or sexual abuse.

Additionally, the paid sick leave law states that:

Employers must maintain records of all sick leave accrued and taken by employees;
Employers cannot request a doctor’s note from an employee unless the employee requests more than three consecutive days of paid sick leave;
Employers cannot discriminate against, discharge, or otherwise retaliate in any way against employees for requesting or using paid sick leave; and
Employers must post and maintain notice about employees’ rights under the Paid Sick and Safe Leave law.

Where employers fail to provide employees with accrued paid sick leave, they are liable for damages (the number of accrued leave hours denied times the employee’s rate of pay), additional statutory damages of $500 per day denied per employee, and penalties of $1000-$2000 per offense for willful violations.

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Universal Paid Leave

District employees are eligible to take paid leave for the birth or adoption of a child, or for a serious health condition of the employee or a family member. As of October 1, 2022 the Paid Leave Act, D.C. Code § 32–541.01, et seq., provides up to:

2 weeks to care for a pregnancy (prenatal leave);
12 weeks to bond with a new child (parental leave);
12 weeks to care for a family member with a serious health condition (family leave); and
12 weeks to care for your own serious health condition (medical leave).

Employers must provide notice to each employee of their rights under this law at hiring and annually afterwards. The current notice form is available here. It is unlawful for an employer to interfere with or retaliate against an employee who requests or applies for Universal Paid Leave.

For more information, employees can visit the DC Paid Family Leave website.

Worker Misclassification

If you are a District resident and believe you have been denied wages or certain benefits and protections as a result of worker misclassification, OAG is here to help. Read these Frequently Asked Questions (FAQs) to learn more about worker misclassification, as well as when and how to seek help.

What is worker misclassification?

Worker misclassification is the practice of incorrectly categorizing workers as independent contractors rather than employees. This is a serious problem because it deprives workers of many of the basic protections of employment, including the minimum wage, overtime pay protection, paid sick days, workers’ compensation coverage, unemployment insurance, and more. When employers misclassify their workers, they shift these costs onto the workers themselves.

What is an “independent contractor”?

An independent contractor is engaged by a company or a person to perform a certain service. Generally, independent contractors are self-employed businesspeople who offer specialized skills and perform a service that is not part of the company’s overall business. True independent contractors have the ability to set their job duties, hours, and wages, as well as select their own customers. They are responsible for paying their own taxes and have to get their own insurance in order to be protected if they are injured on the job or become unemployed. Independent contractors receive a Form 1099 for paying their federal taxes, while employees receive a Form W-2.

How is an “independent contractor” different from an “employee”?

In contrast to an “independent contractor,” generally employees are individuals who regularly perform work within that employer’s ordinary course of business. Workers are not independent contractors simply because they work offsite, or work remotely, or have flexibility over their hours and responsibilities.

A worker is more likely to be an “independent contractor” if:

the nature of their work involves a high degree of skill or entails a separate calling or business from that of the employer;
if their work is not a regular part of the employer’s typical business, regardless of whether the work is continuous or intermittent; and
if they are hired to complete a particular job, as opposed to being hired to perform ongoing services.

Why does it matter whether I am a worker or an independent contractor?

Employees get special protections with many federal and District laws that are not available to independent contractors.

District workers, but not independent contractors, get the following benefits:

District minimum wage of $15.20 per hour;
Overtime pay protections under the federal Fair Labor Standards Act;
Workers’ Compensation coverage paid for by their employer, in case they are injured on the job;
Unemployment Insurance paid for by their employer, in case they lose their job;
The right to collectively bargain under the National Labor Relations Act for improved pay and working conditions;
Employment taxes, including social security and Medicare taxes, paid by their employers;
In some instances, guaranteed family and medical leave under the federal Family and Medical Leave Act; and
The protection of additional federal labor and employment laws, such as Title VII of the Civil Rights Act of 1964, which protects employees from discrimination based on race, religion, sex, and national origin.

What are the harms of worker misclassification?

When employers misclassify their workers, workers are deprived of the full wages they are entitled to under the minimum wage and overtime work laws. This is called “wage theft.”
When employers misclassify their workers, workers do not get the full protections they are entitled to under federal and District laws.
Employers that properly classify their employees are put at a competitive disadvantage against businesses that shirk costs by misclassifying their workers.
Misclassification also deprives the District of tax revenue from income, Social Security, Medicare and unemployment taxes, which provide funding for public services.

What else should I know about misclassification?

Worker misclassification is rampant in the construction industry, and the District has special protections for construction workers. In 2019, OAG released a report showing that District construction companies that misclassify workers unlawfully cut their labor costs by anywhere from 16.7% to 40% at the expense of workers. When construction workers are misclassified as “independent contractors,” they are rendered uniquely vulnerable without the protection of workers’ compensation and paid sick leave, because of the high-risk nature of their work. The District’s Workplace Fraud Act applies specifically to the construction industry and requires companies to classify workers as employees in most circumstances. To classify a worker as an independent contractor, construction companies must prove that:

An individual is free from the employer’s direction and control,
An individual is economically independent, and
An individual’s work falls outside of the core business of that company.

You can contact OAG to report worker misclassification.

In 2018, OAG worked with the D.C. Council on legislation that grants OAG independent authority to investigate and bring wage theft cases, including misclassification cases. Since gaining independent authority, OAG has launched more than 40 investigations into wage theft and payroll fraud. In 2020, OAG secured it’s largest wage theft settlement to date, requiring Power Design—a major electrical contractor—to pay $2.75 million to hundreds of harmed workers and the District over wage theft and worker misclassification claims. OAG also resolved a case against Capitol Drywall, Inc.—a Maryland construction company—penalizing them $200K for cheating 100+ District workers out of wages and benefits by misclassifying them as Independent Contractors.

Workers can report worker misclassification, wage theft, and other wage and hour violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov. Learn more about workers’ rights in the District and how to get help if those rights are being violated at oag.dc.gov/workers-rights.

This section contains general information about worker misclassification and how D.C. residents can get further information and assistance. The information above is for general educational purposes and is not legal advice. The standard for analyzing worker misclassification may change with legislative changes, and currently is different depending upon whether one’s work is within the construction industry or not.

Exemptions from Wage and Hour Laws

Minimum Wage and Overtime Exemptions

The following employees are exempt from both the District’s minimum wage and overtime pay laws:

“White Collar” workers: Those employed in a bona fide executive, administrative, or professional capacity. D.C. Code §32-1004(a)(1); § 201 et seq. of the Fair Labor Standards Act.
Outside Salespeople: An outside sales employee is any employee who is employed for the purpose of making sales or obtaining orders, and who customarily and regularly works away from the employer’s place of business. D.C. Code §32-1004(a)(1)); § 201 et seq. of the Fair Labor Standards Act.
Newspaper delivery jobs (when delivering directly to consumers’ homes). D.C. Code §32-1004(a)(2).
Volunteers engaged in the activities of an educational, charitable, religious, or nonprofit organization without any expectation of payment. D.C. Code § 32-1002(2)(A).
Lay member of religious organizations who are engaged in religious functions. D.C. Code § 32-1002(2)(B).
“Casual” Babysitters who are employed on an irregular or intermittent basis, and whose vocation is not babysitting. D.C. Code § 32-1002(2)(C); 7 DCMR 999.2.
United States Government Employees.

Minimum Wage Exemptions

The following employees are exempt from the District’s minimum wage laws, but not overtime laws:

Disabled Workers with a United States Department of Labor Certificate. Workers with disabilities who work for an employer who has received a certificate from the United States Department of Labor that authorizes the payment of less than minimum wage are exempt from the District’s minimum wage laws. D.C. Code § 32-1003(d).
Security Officers. A security officer working in an office building in the District of Columbia is exempt from the District’s minimum wage laws. Employers of such security officers must pay wages, or any combination of wages and benefits, that are not less than the combined amount of the minimum wage and fringe benefit rate for the guard 1 classification established by the United States Secretary of Labor pursuant to the Service Contract Act of 1965, approved October 22, 1965 (79 Stat. 1034; 41 U.S.C. § 351), as amended. D.C. Code § 32-1003(h).
Minors. Individuals under the age of 18 years old may be paid the minimum wage established by the United States Government, rather than the District’s minimum wage. 7 DCMR § 902.4(g).
Student-Employees. Students employed by institutions of higher education may be paid the minimum wage established by the United States Government, rather than the District’s minimum wage. 7 DCMR § 902.4(f).
Miscellaneous Acts Setting Other Minimum Wages. Individuals employed pursuant to the Job Training Partnership Act, the Older Americans Act, or the Youth Employment Act, must be paid the wages set forth in those laws. 7 DCMR § 902.4(b)-(d).

Overtime Exemptions

The following employees are exempt from the District’s overtime pay laws, but not minimum wage laws:

Airline Employees. Airline employees who voluntarily trade workdays with another employee for the primary purpose of using travel benefits available to those employees. D.C. Code § 32-1004(b)(6).
Automobile Dealership Employees. Any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trailers, or trucks, if employed by a non-manufacturing establishment primarily engaged in the business of selling these vehicles to ultimate purchasers. D.C. Code § 32-1004(b)(3).
Commissioned Employees. Overtime pay is not required if the employee works for a retail or service establishment and: (1) the regular rate of pay of the employee is in excess of 1½ times the minimum hourly rate applicable to the employee codified in D.C. Code §32-1003; and (2) more than ½ of the employee’s compensation for a representative period (not less than 1 month) represents commissions on goods or services. D.C. Code § 32-1003(e)(1)-(2).
Railroad Employees. Any employee employed by a railroad. D.C. Code § 32-1004(b)(2).
Seamen. Any employee employed as a seaman. D.C. Code § 32-1004(b)(1).
Live-in Domestic Workers (who live with employer). A worker employed as a private household worker who lives on the premises of the employer. 7 DCMR § 902.5.
Companions for the Aged or Infirm. A worker employed as a companion for the aged or infirm. 7 DCMR § 902.5. Note that persons who spend more than 20 percent of their time on household work not directly related to caring for the aged or infirm shall not be deemed a companion for the aged or infirm. 7 DCMR § 999.2.

Other Employment Laws

Ban on Noncompete Agreements

A noncompete is provision in a written agreement or a workplace policy that prohibits an employee from performing work for another for pay or from operating the employee's own business. Under the Ban on Noncompete Agreements, D.C. Code § 32–581.01, et seq., as of October 1, 2022:

It is illegal for District employers to impose noncompetes on District employees who make under $150,000 per year, with the exception of casual babysitters and partners in a partnership; and
Employees who earn over $150,000 can only be subject to a one-year noncompete, and only if the worker is notified in advance, except that medical specialists who earn over $250,000 per year can be subject to a two-year noncompete.

Employers who violate this law by requesting or requiring an employee sign a noncompete are liable for $500-$1000 to the employee and penalties of $350 to $1000 per violation. Employers that attempt to enforce illegal noncompete are liable for no less than $1500 to the employee and $350-$1000 in penalties.

For employees not covered by Ban on Noncompete Agreements, a noncompete may still be illegal and unenforceable under other District laws related to contracts and antitrust law.

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Wage Transparency Act

Starting June 30, 2024, under the Wage Transparency Act, D.C. Code § 32–1451, et seq., employers with District employees must:

Provide a minimum and maximum salary or hourly pay information in all job postings;
Tell job candidates the healthcare benefits associated with any jobs before the first interview; and
Post a visible notice in the workplace notifying employees of their rights under the Act.

Additionally, the law prohibits employers from:

Prohibiting employees from inquiring about, disclosing, comparing, or otherwise discussing their compensation;
Discharging, disciplining, or otherwise retaliating against an employee who inquires about, discloses, compares, or otherwise discusses their compensation;
Screening prospective employees based on their wage history; and
Seeking the wage history of a prospective employee.

An employer that violates the Wage Transparency Act may be liable for fines of $1000 and up to $20,000 for repeat violations.

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Domestic Workers’ Employment Rights

Domestic workers are employees who provide services for compensation in private residences. Domestic workers may provide childcare, elder care, cleaning services, cooking services, or other related household services. Domestic workers do not include family members of the employer, individuals who primarily perform construction or repair services, or individuals who primarily care for pets. Domestic workers also do not include individuals who work on a casual basis, i.e., at irregular or uncertain times.

Under the District’s Domestic Workers Employment Rights Amendment Act of 2022, D.C. Code § 32–1071.01, et seq.:

Domestic workers are entitled to a written services contract, in the worker’s preferred language, that includes:
- The domestic workers’ start date and end date (if any);
- The location where work will be performed;
- The rate of pay;
- The form and frequency of payment;
- Any other compensation or reimbursement, including health insurance premiums or transportation allowances;
- The date of first payment;
- The domestic workers’ weekly schedule, including days of the week, start time, end time, and the number of hours of work per week;
- Any types of breaks or leave provided, whether paid or unpaid; and
- For live-in domestic workers, a description of the type and value of lodging provided, time of sleeping period, and personal time allotted;
Domestic workers are entitled to the same benefits and protections as other District employees, including minimum wage and overtime pay and paid sick leave; and
Domestic workers are covered by the District’s Human Rights Act and may not be subject to discrimination.

An employer that fails to provide a domestic worker with a written services contract may be liable for damages of no less than $250 to the worker and penalties of no less than $250.

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Fair Criminal Record Screening (Ban the Box)

The “Ban the Box” law, D.C. Code § 32–1341, states that any employer with more than 10 District employees may not:

Inquire about or require a job applicant to disclose an arrest or criminal accusation; or
Inquire about or require a job applicant to disclose a conviction at any point prior to making a conditional offer of employment.

After making a conditional offer of employment, an employer may only inquire about criminal convictions (not arrests or criminal accusations). Then, employers may only withdraw the offer or take some other adverse action after considering the specific duties and responsibilities of the job and the bearing of the criminal offense at issue on the candidate’s fitness for the job, including by considering how recent the conviction was, how old the applicant was when the offense occurred, and the frequency or seriousness of the criminal offense.

An employer that violates the Ban the Box law will be liable for the following fines, half of which will be awarded to the affected worker: $1000 for employers with 11-30 employees, $2500 for employers with 31-99 employees, and $5000 for employers with 100+ employees.

Workers can report suspected violations to OAG at (202) 724-7730, workers@dc.gov, or trabajadores@dc.gov.

Wage and Hour Laws

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