More than a month after the employees at Rasika Penn Quarter expressed their desire to unionize, the conflict between the staff and management has become increasingly public. Protests have erupted in the streets, accompanied by allegations of intimidation, illegal practices, and retaliation that have been reported in the media, according to The Washington Post. Central to the conflict is a contentious change implemented in July, which shifted servers from receiving tipped hourly wages to a commission-based pay system. This alteration coincided with an increase in Washington, D.C.’s tipped minimum wage to $10 per hour. Owner Ashok Bajaj, one of the few restaurateurs supporting the commission model, has defended it as a viable solution for the industry in light of escalating labor costs. Nevertheless, employees argue that this change was enforced without their agreement and has resulted in substantial reductions in their pay, as noted by The Washington Post. Under the revised pay structure, servers now receive a 13.5% commission on their sales, in addition to a share of any tips exceeding the restaurant’s 20% service charge. A document detailing this policy, which was reviewed by The Washington Post, was presented to staff, mandating their signature or departure. Isa Duzova, a server and bartender, recounted management’s message: “They were saying, ‘Hey, if you don’t like it, the door is over there. It’s not going to change.’”
Concerns regarding the commission system had emerged prior to the unionization efforts, with a representative from Unite Here Local 25 indicating that workers had reported potential violations of wage laws to the D.C. attorney general’s office last year. A spokesperson for Attorney General Brian Schwalb refrained from confirming or denying any investigation. Complaints included issues related to the pay structure for front-of-house staff. The situation became more contentious when it was revealed that Bajaj had acquired a $7.1 million residence, leading workers, already discontented with their diminished earnings, to view this purchase as inconsistent with his assertions that increased wages jeopardized the restaurant’s financial stability. In reply, Bajaj rejected the examination, stating, “My lifestyle choices and investment decisions are not for others to judge.” In contrast, various restaurateurs, including Fire & Vine Hospitality in Seattle, have implemented commission structures that incorporate clearer contributions from their employees. The future viability of Rasika’s strategy in light of persistent legal and labor disputes is still in question.
