As a movement led by labor unions pushes for a drastic increase in the minimum wage to $25 per hour in Washington, D.C., local small business owners are pushing back, warning that it will lead to business closures and layoffs.
According to local media outlet ARLNOW on the 11th, the labor group “One Fair Wage” is campaigning to put a proposal to raise the D.C. minimum wage to $25 by July 2029 to a public referendum. While labor unions welcome this move, arguing it will reduce the cost of living for workers, analysts suggest it could be the “final blow” to the restaurant industry, which has already been hit hard by cuts in federal and contract workers, immigration restrictions, and a decline in tourism.
An economist at George Mason University stated, “While some workers may benefit from the wage increase, many restaurants will eventually cut costs by reducing staff and switching to kiosk ordering or reducing serving staff to use robots.”
Meanwhile, several administrative procedures remain before the proposed $25 hike can be placed on the ballot this coming November, including the need to collect signatures from more than 5% of all D.C. voters within the next 180 days.