LANHAM, Md. (WNEW) — D.C. workers are celebrating today, as the city’s minimum wage increases from $8.25 to $9.50 per hour.

Under the new law, the minimum wage will increase by $1 each year through 2016, when it will cap at $11.50. D.C. Mayor Vincent Gray signed the “Minimum Wage Amendment Act” into law on January 15 after unanimous passage by the D.C. Council.

The federal minimum wage is $7.25.

New Laws: Virginia

The bill will not raise the minimum wage, which is $2.77 per hour, for restaurant workers who rely on tips.

If hourly tip earnings along with the base minimum wage do not add up to the District’s full minimum wage, employers are supposed pay the difference. However, Stephanie Roth of the Restaurant Opportunities Center of Washington, DC says not all restaurants are compliant with that law.

New Laws: Maryland

Also taking effect today is a law that closes loopholes in the previous earned sick leave bill so that several thousand of the District’s restaurant workers are included and all workers can use accrued sick leave after 90 days on the job.

WNEW D.C. Bureau Chief Matt DelSignore contributed to this report. Follow him and WNEW on Twitter.