Indian Restaurant Draws National Attention In How It Is Dealing With Workers

India-West News Desk

WASHINGTON, DC – More than a month after workers at Rasika Penn Quarter announced their intent to unionize, the labor dispute between staff and management has escalated publicly. Demonstrations have taken place on the streets, while accusations of intimidation, unlawful practices, and retaliation have played out in the media, The Washington Post reports.

At the heart of the dispute is a controversial shift in July, when servers transitioned from tipped hourly wages to a commission-based pay structure. The change coincided with Washington, D.C.’s tipped minimum wage rising to $10 an hour. Owner Ashok Bajaj, one of a handful of restaurateurs advocating for commissions, has defended the model as a sustainable solution for the industry amid rising labor costs. However, workers say it was imposed without consent and has led to significant pay cuts, The Washington Post noted.

Under the new structure, servers earn a 13.5% commission on sales, plus a portion of any gratuities beyond the restaurant’s 20% service charge. A document outlining the policy, viewed by The Washington Post, was presented to employees, requiring them to sign or leave. Isa Duzova, a server and bartender, recalled the management’s stance: “They were saying, ‘Hey, if you don’t like it, the door is over there. It’s not going to change.’”

A separate server, speaking anonymously, claimed that most workers initially voted for an alternative plan that would have paid them $18 an hour plus a lower commission. Bajaj disputed this, saying servers at both Rasika locations supported the commission model, while staff at sister restaurant Annabelle opted for hourly wages. He insisted no one was coerced, The Washington Post reports.

Concerns over the commission system predate the union push. A spokesperson for Unite Here Local 25 said workers raised potential wage law violations with the D.C. attorney general’s office last year. A spokeswoman for Attorney General Brian Schwalb declined to confirm or deny an investigation. However, complaints included grievances about the front-of-house pay structure, according to The Washington Post.

The controversy intensified when news broke that Bajaj had purchased a $7.1 million home. Workers, already frustrated over reduced earnings, saw the acquisition as contradictory to his claims that higher wages threatened the restaurant’s viability. In response, Bajaj dismissed the scrutiny, telling The Washington Post, “How I live, where I invest, it’s nobody’s business.”

Meanwhile, other restaurateurs, such as Fire & Vine Hospitality in Seattle, have adopted commission models with more transparent input from staff. Whether Rasika’s approach will withstand ongoing legal and labor challenges remains uncertain.

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