District of Columbia Attorney General Brian L. Schwalb announced Thursday that IHG Management LLC (IHG) has agreed to pay more than $186,000 to settle allegations of failing to provide transparent and timely compensation policies to workers at the former Moon Rabbit in Southwest D.C. The now-closed restaurant was owned and operated by IHG at the InterContinental Hotel.
According to a news release, the settlement follows accusations that the company’s practices left staff vulnerable to exploitation and confusion over their wages.
Under the terms of the settlement with the Office of the Attorney General (OAG), IHG will pay $126,650 in compensation to 42 former employees of the Moon Rabbit restaurant, located at The Wharf. Additionally, the company will pay $60,000 in penalties to the District and commit to revising its practices to ensure compliance with wage and hour laws at any restaurant it manages in the future.
“Workers are legally entitled to know how much they’re going to be paid and when—full stop,” Schwalb said in the release. “IHG kept employees in the dark, sowing fear and confusion among 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.”
Linda Martin, president of UNITE HERE Local 25, which represents hotel and restaurant workers in the region, praised the case’s outcome. “This is a win for restaurant workers across DC,” Martin remarked. “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.”
The settlement stems from concerns raised by IHG employees regarding a lack of transparency in tip-sharing practices at the former Moon Rabbit restaurant. Workers reported that service fees were not clearly allocated and that tips often took weeks to be distributed in paychecks. The OAG’s investigation found that IHG had violated the District’s Minimum Wage Revision Act by failing to properly inform workers of its tip-sharing policies, leading to confusion and uncertainty about their pay.
IHG, a Maryland-based hospitality company, operated the Moon Rabbit restaurant at the InterContinental Hotel from October 2020 through May 2023. In early 2023, Chef Kevin Tien, who had been leading the restaurant, announced his departure from IHG. Shortly thereafter, IHG closed Moon Rabbit and later opened a new restaurant in the same space.
Chef Tien has since opened a new, independent Moon Rabbit restaurant in Penn Quarter, which is not affiliated with IHG. The OAG said the settlement pertains only to the former Moon Rabbit location at The Wharf and does not involve the new establishment, which opened in 2024.
As part of the settlement, IHG is required to comply with all District wage and hour laws at its District restaurants moving forward and will be required to provide regular reports documenting its compliance with tipped-wage requirements.
Eligible workers who were not properly informed of tip-sharing policies will be contacted in the coming weeks regarding their compensation.
Source: Washington Informer
