Running a restaurant in the District is a contact sport—high volume, high expectations, and constant change. PeopleWorX pairs modern payroll + HR tech with a named, dedicated rep who knows DC’s rules (and your floor plan). The result: fewer surprises, faster pay cycles, and happier teams.
DC Compliance Watch (Quick Hitters)
A 30‑second snapshot of what’s unique or newly relevant in DC for restaurants right now.
- Tipped minimum wage: 2025 step-up paused. The tipped base remains $10.00 as of July 1, 2025 while the Council reviews future phases. We’ll alert you before any menu or payroll changes.
- Service-fee disclosures must be crystal clear. If you charge a service fee, guests must see plain‑English disclosures before ordering (menus, online, signage) stating where the money goes.
- Universal Paid Leave (employer tax) = 0.75%. Collected and filed separately from unemployment—our filings handle the math and remittance.
- Harassment training for alcohol‑licensed restaurants. Use an OHR‑certified trainer: within 90 days of hire, then at least every two years. Keep certificates + submit required reports.
Want the details? Scroll to “DC‑specific challenges we simplify.”
Why PeopleWorX for DC restaurants
- Human help you can actually reach. You get a named rep who knows DC (not a ticket queue).
- Purpose‑built for service teams. Time, tips, pooled/passthrough earnings, and shift premiums flow cleanly into payroll.
- Multi‑jurisdiction ready. We onboard MD/VA commuters correctly (D‑4A + home‑state withholding) and keep DC filings on track.
DC‑specific payroll & HR challenges we simplify
1) Tips, service charges, and guest disclosures
DC allows service fees, but disclosures must be unambiguous and visible before ordering. Ambiguous phrases like “supports our staff” can be non‑compliant.
How PeopleWorX helps
- Map fee language to menus, websites, and receipts so disclosures match practice.
- Track distribution with audit‑ready reports (who received what, when, and why).
- Configure pooled vs. direct tips, service‑charge passthroughs, and manager approvals.
2) Tipped wage + sick leave math
The tipped base sits at $10.00 (2025 pause). DC’s Sick & Safe Leave requires that when tipped employees use sick time, those hours pay at the full DC minimum wage, not the tipped base.
How PeopleWorX helps
- Set accruals correctly for restaurants/bars (1 hour per 43 worked; up to five days).
- Auto‑override sick hours to full DC minimum wage on payroll.
- Separate earnings codes for transparency on pay stubs.
3) Universal Paid Leave (PFL) filings and funding
DC’s PFL is funded by a quarterly 0.75% employer payroll tax filed via DOES—separate from UI.
How PeopleWorX helps
- Automates wage base calculations and filings; reconciles quarters; stores proofs.
- Alerts you ahead of rate or form changes.
4) Harassment training for alcohol‑licensed shops
Restaurants with alcohol licenses must use OHR‑certified training: within 90 days for new hires, then at least every two years; employers must retain certificates and submit required reporting.
How PeopleWorX helps
- Calendar and coordinate trainings; store certificates; produce compliance reports.
- Onboarders prompt new hires to schedule training before the 90‑day mark.
5) Commuter workforce (MD/VA withholding)
Many staff live in Maryland or Virginia but work in DC. Nonresidents typically complete Form D‑4A so you withhold their home‑state income tax, not DC’s.
How PeopleWorX helps
- Residency‑aware onboarding flows that capture the right forms on day one.
- Separate state tax profiles per employee; fewer amended returns later.
6) Clean‑air/parking cash‑out rules
If you offer free or subsidized parking and have ≥20 DC employees, you must either offer a transit benefit of equal value, pay a fee, or adopt a TDM plan.
How PeopleWorX helps
- Benefit design guidance; payroll setup for pre‑tax transit; maintain annual compliance documentation.
7) Poster, notice, and wage‑hour enforcement
DC updates postings and guidance frequently and enforces across wages, tips, leave, scheduling, and anti‑discrimination.
How PeopleWorX helps
- Quarterly “compliance sweep” from your rep (new posters, required notices, handbook tweaks).
- Timekeeping policies that match local rules; clean audit trails.
What you and your team experience
- Payroll you can trust. Accurate checks for mixed tipped/non‑tipped hours, sick‑time overrides, and complex shifts.
- Happier staff. Faster onboarding, early visibility into schedules and pay, and clear tip/service‑charge statements.
- Less admin. We file DC PFL, manage MD/VA withholding, and keep certificates & posters current.
Pricing that scales with your floor plan
Transparent, per‑employee pricing with optional add‑ons (outsourced HR, recruiting support, benefits admin). Ask us for a quote tailored to FOH/BOH mix and turnover.
Download the Free HR & Payroll Checklist
Sign up below to instantly receive the DC Restaurant HR & Payroll Checklist (2025).
Frequently Asked Questions
Q: What’s the current tipped wage in DC?
A: As of July 1, 2025, the tipped base remains $10.00 while the Council reviews future steps.
Q: Can we add a service fee instead of raising menu prices?
A: Yes, but DC requires clear, advance disclosures about the fee and who receives it (menus, online, in‑store). We’ll help you word it and mirror that on receipts.
Q: How do we handle sick leave for tipped employees?
A: Accrue 1 hour per 43 worked (restaurant/bar rule; up to five days). When sick time is used, pay those hours at the full DC minimum wage, not the tipped base—our pay rules handle it automatically.
Q: We have lots of MD/VA commuters. How do we withhold?
A: Nonresidents generally complete D‑4A so payroll withholds in their home state instead of DC. Our onboarding captures and applies this by employee.
Q: What’s this DC Universal Paid Leave tax?
A: An employer‑paid 0.75% payroll tax that funds DC’s Paid Family & Medical Leave; we calculate, file, and fund it quarterly.
Q: Do we have to do special harassment training?
A: If you hold an alcohol license, yes—OHR‑certified training within 90 days for new hires and at least every two years for all staff; keep certificates and submit required reporting.
Let’s make compliance quiet and paydays boring (in the best way).
→ Book a 15‑minute discovery to map your roles (tipped vs. non‑tipped), commuter mix, and license status to a DC‑specific setup.
