Attorney General Schwalb Secures $186,000+ for Hotel Restaurant Workers & DC

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Attorney General Brian L. Schwalb today announced that IHG Management LLC (IHG) must pay more than $186,000 to resolve allegations that it failed to provide accurate, honest, timely, and transparent compensation policies to workers at Moon Rabbit when it was owned and operated by IHG at the InterContinental Hotel-leaving staff vulnerable to exploitation. As part of the settlement with the Office of the Attorney General (OAG), IHG will pay $126,650 to 42 former InterContinental Hotel restaurant workers, pay $60,000 in penalties to the District, and change its practices with respect to any restaurant it manages.

Chef Kevin Tien has since opened a new, independent Moon Rabbit restaurant in Penn Quarter, which is not owned or operated by IHG. OAG's settlement is based on facts occurring at the IHG location at The Wharf and is entirely unrelated to the new location, which opened in 2024.

"Workers are legally entitled to know how much they're going to be paid and when-full stop," said Attorney General Brian Schwalb. "IHG kept employees in the dark, sowing fear and confusion amongst staff and leaving them vulnerable to exploitation. I'll always have workers' backs and use every legal tool available to ensure that businesses in the District compete on a level playing field."

"This is a win for restaurant workers across DC," said Linda Martin, President of UNITE HERE Local 25, which represents hotel and restaurant workers in D.C., Maryland, and Virginia. "We are grateful to have an OAG that fights so hard to enforce the District's powerful worker protections. We know many other restaurant workers are still struggling, and if you suspect your employer is violating the law, we urge you to reach out."

IHG Management LLC is a Maryland-based hospitality company that operates the InterContinental Hotel restaurant located at 801 Wharf Street SW in the District. From October 2020 through May 2023, IHG operated the fine-dining restaurant Moon Rabbit at the InterContinental Hotel. In early 2023, Moon Rabbit's chef, Kevin Tien, announced he was parting ways with IHG. IHG abruptly closed Moon Rabbit before opening a new restaurant in the same space.

IHG employees publicly raised concerns about a lack of transparency in tip-sharing at the former Moon Rabbit, with workers claiming that it was unclear how service fees were allocated and that it would take weeks for tips to be distributed in paychecks. OAG opened an investigation and found evidence validating the workers' claims. OAG determined that IHG failed to notify workers of its tip-sharing policies, as the District's Minimum Wage Revision Act requires. OAG also concluded that the lack of required notice created confusion among tipped workers about how their pay had been calculated and uncertainty about whether they were being underpaid.

Under the terms of the settlement, IHG is required to:

• Pay $186,650, including:
  • $126,650 to 42 restaurant workers who were not properly informed of tip-sharing policies. Eligible workers will be contacted in the coming weeks.
  • $60,000 in penalties to DC.
    
• Change its practices and report on compliance. IHG must comply with all District wage and hour laws at its District restaurants moving forward and provide a report documenting compliance with all tipped-wage requirements.

A copy of the settlement agreement is available here.

This matter was handled by former Assistant Attorney General Zack Hill and Section Chief Graham Lake of the Workers' Rights & Antifraud Section.

OAG's Efforts to Protect Workers

OAG's Workers' Rights and Antifraud Section is dedicated to fighting wage theft and protecting District workers. Since January 2023, OAG has secured more than $14 million for workers and the District. In total, since gaining wage theft enforcement authority, OAG has secured over $30 million by bringing investigations and lawsuits against employers who violate District law. OAG's wage theft enforcement efforts have focused on industries with high populations of vulnerable workers, such as construction, restaurants and hospitality, healthcare, and the gig economy.

How to Report Wage and Hour Violations

Workers who believe that their rights have been violated, or that they have experienced wage theft or other wage and hour violations, can contact OAG by calling (202) 724-7730 or emailing [email protected] or [email protected].