In a landmark case for workers’ rights, Swahili Village, a restaurant located in Washington D.C., agreed to a $500,000 settlement after being accused of widespread wage theft. The lawsuit alleged that the restaurant engaged in illegal practices including underpaying employees, withholding tips, not providing required sick leave, and failing to pay overtime.
Employees noticed they were not receiving their full pay, and there were discrepancies in the handling of tips and hours. They noted that the restaurant did not properly use payroll software to calculate tips and manage work hours, which contributed to the confusion and exploitation. Despite raising concerns, employees found their complaints were dismissed, and many continued working under these conditions due to a lack of alternative job options during the pandemic. According to the lawsuit, the restaurant underpaid its workers, sometimes paying less than the minimum wage.
As part of the settlement, Swahili Village will pay over $260,000 to 72 former employees, covering owed wages and damages. The restaurant must also pay more than $197,000 in penalties to the city and provide documentation proving compliance with wage and hour laws for the next three years.
Law Offices of Eric A. Boyajian, Employment Lawyer, regularly litigates wage and hour class actions like the one against Swahili Village. If you believe that your employer is not treating you fairly, then give us a call today for a free evaluation.