DC AG settlement means $126,000 for former Moon Rabbit restaurant workers

The Intercontinental Hotel can be seen on the right at the Wharf Marina in Washington, DC, on February 6, 2022. (AFP via Getty Images/DANIEL SLIM)

The D.C. Attorney General’s office has reached a settlement with IHG Management resolving compensation claims at the former Moon Rabbit restaurant at the Intercontinental Hotel at The Wharf.

It will result in $126,650 going to 42 former restaurant workers and $60,000 in penalties paid to the District.

The settlement is unrelated to the current Moon Rabbit restaurant in D.C.’s Penn Quarter, opened by chef Kevin Tien shortly after Tien and the Intercontinental Hotel parted ways in 2023.

The Intercontinental Hotel abruptly closed Moon Rabbit in May 2023, around the time hotel employees were planning a vote to unionize. The Intercontinental denied that the decision to close had anything to do with pending worker unionization.

Tien, who reopened a new iteration of Moon Rabbit in Penn Quarter shortly after The Wharf location closed, has previously declined to discuss the closure.

In announcing the settlement with IHG Management, D.C. Attorney General Brian Schwalb said it resolves allegations that it failed to provide accurate, honest, timely and transparent compensation policies to workers, including tip-sharing policies.

“Workers are legally entitled to know how much they’re going to be paid and when — full stop,” Schwalb said. “IHG kept employees in the dark, sowing fear and confusion amongst staff and leaving them vulnerable to exploitation.”

“Hospitality staff are among the most dedicated and hardworking individuals and should be treated and compensated fairly,” said Tien in a statement. “Protecting restaurant workers’ rights is essential in our business, and we appreciate Attorney General Schwalb for setting the standard of care for Washington, D.C. Moon Rabbit looks forward to welcoming guests at its independently run new location.”

IHG denies the District’s allegations, and the settlement is not an admission of an wrongdoing.

The Attorney General’s office said it would contact eligible former employees in coming months. A copy of the settlement is online.

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Jeff Clabaugh

Jeff Clabaugh has spent 20 years covering the Washington region's economy and financial markets for WTOP as part of a partnership with the Washington Business Journal, and officially joined the WTOP newsroom staff in January 2016.

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