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Rose's Luxury in Washington, D.C. Photo: Olivier Douliery/AFP/Getty Images

Washington, D.C.'s city council is preparing to vote on a bill to repeal an initiative that requires businesses to pay tipped workers minimum wage, reports the Washington Post.

Why it matters: Supporters of Initiative 77, which is scheduled to go into effect in October, say workers often don't make enough in tips to earn minimum wage. Critics say the law would raise labor costs and ultimately lead to fewer jobs.

The backdrop: Businesses in Washington are currently allowed to pay restaurant workers as little as $3.89 per hour, as long as they make up the difference between tips and minimum wage — which currently sits at $13.25 but will reach $15 by 2020. The new law, which was approved via ballot initiative in June, outlaws the practice of paying tipped workers a lower wage.

  • According to Vox, tipped servers in D.C. barely make above minimum wage and are twice as likely to live in poverty than the rest of the city's workers.
  • The limited research that has been done on the effects of raising tipped minimum wage varies in its findings. Overall, businesses end up paying a greater percentage of their workers' wages — with that added cost often passed onto consumers in the form of higher menu prices.
  • In New York, where tipped minimum wage was raised from $5.00 to $7.50 in 2015, server wages increased by 6% with no negative impact on the number of restaurant jobs, per the Bureau of Labor Statistics.
  • But in D.C., hundreds of servers, restaurant owners and others in the industry signed up to testify in favor of repealing the initiative, claiming it would force businesses to close and customers to stop tipping.

The big picture: There are currently seven states where it's illegal to pay a lower wage to tipped workers. Positive results in Washington, the first major city to pass such a law, could have bolstered the fight to slow income inequality in the U.S. But based on what council members said at a hearing Monday, it's looking increasingly likely that the experiment won't get a chance to take effect.

Go deeper: None of the state minimum wages provide a family living wage

Several states putting minimum wage on the ballot in November

Go deeper

32 mins ago - World

Sudan's military places civilian prime minister under house arrest

Sudanese Prime Minister Abdallah Hamdok during a 2020 news conference in Khartoum, Sudan. Photo: Mahmoud Hjaj/Anadolu Agency via Getty Images

Sudan's civilian Prime Minister Abdalla Hamdok was put under house arrest and several other ministers were also detained Monday in what appears to be a military coup in the country, per local reports.

Why it matters: The arrests of the civilian faction in the Sudanese government came a day after U.S. envoy Jeffrey Feltman met with the head of the military faction of the Sudanese government General Abdul Fattah al-Burhan and warned him against staging a coup.

"Atmospheric river" swings Northern California from drought to flood

Satellite view of the bomb cyclone swirling off the coast of the Pacific Northwest and the atmospheric river affecting California on Oct. 24. Photo: CIRA/RAMMB

A series of powerful "atmospheric river" storms are delivering historic amounts of rainfall across parts of drought-stricken California and the Pacific Northwest — triggering widespread power outages and flooding.

Why it matters: The strong atmospheric river, packing large amounts of moisture, is causing Northern California to whiplash from drought to flood.

Updated 3 hours ago - World

Saudi dissident claims MBS said he could get "poison ring" to kill king

Saudi Crown Prince Mohammed bin Salman attending the Saudi Green Initiative Forum, via video link, in Riyadh, Saudi Arabia on Saturday. Photo: Royal Court of Saudi Arabia/Handout/Anadolu Agency via Getty Images

A former senior Saudi intelligence official who worked with the U.S. on counterterrorism alleged to "60 Minutes" in an interview broadcast Sunday that Crown Prince Mohammed bin Salman discussed in 2014 killing the kingdom's then-monarch.

Why it matters: The claim by the exiled Saad al-Jabri, whom Saudi authorities describe as "a discredited former government official," that the crown prince, known as "MBS," allegedly said he could obtain a "ring from Russia" to carry out the attack, is one of several serious but unproven allegations he made on the CBS show.