Swahili Village Hit with $526,000 Fine in D.C. Wage Theft Settlement

Kenyan-owned dining establishment Swahili Village located near Embassy Row in Washington, D.C., has reached a significant settlement in a wage theft case brought by the city's attorney general's office.

The restaurant, along with its principals Kevin Onyona (founder and CEO) and Emad Shoeb (COO), has agreed to pay over half a million dollars to resolve allegations of labour law violations. This settlement, which includes restitution, penalties, and administrative fees, marks the largest of its kind since the D.C. Council empowered the attorney general's office to pursue such cases in 2017. The attorney general's office accused Swahili Village of engaging in an "egregious pattern of wage theft," alleging that the restaurant paid workers as little as $5 per hour (including tips), failed to provide overtime wages, withheld tips, and neglected to offer required sick leave.

These actions were deemed to violate D.C. labour laws. Many of the affected employees were people of colour including young African immigrants. As part of the settlement, Swahili Village must pay approximately $260,000 in restitution to 72 workers. Additionally, the restaurant will pay over $197,600 in penalties to the District and more than $69,000 to fund a claims administrator responsible for contacting eligible workers and distributing the owed money. Despite the settlement, Swahili Village, Onyona, and Shoeb have admitted no wrongdoing or liability.

The case against Swahili Village was filed in August of the previous year, with the attorney general's office alleging violations of multiple D.C. labour laws. The office claimed that these "egregious and systemic violations" had persisted for years, suggesting that wage theft and worker abuse were intentional business practices at the restaurant. Onyona, the chef-owner, has reluctantly agreed to the settlement to move past the issue and focus on his restaurant's future. He reveals that he would need to borrow money to fulfil the agreement's requirements and may have to reduce his current staff by approximately half, a decision he describes as difficult.

The original Swahili Village operated as a casual, 45-seat establishment adjacent to a gas station before expanding to a more upscale location on M Street NW in 2020. Onyona invested over $2 million to transform the former Vidalia restaurant into a luxurious dining experience, envisioning it as a premier destination for authentic Kenyan cuisine. The restaurant's grand opening was attended by former Kenyan President Uhuru Kenyatta. However, the restaurant faced significant challenges shortly after its opening when D.C. Mayor Muriel E. Bowser ordered the closure of indoor dining due to the COVID-19 pandemic.

Unprepared for takeout or delivery services, Swahili Village saw its sales plummet dramatically. Unlike its Beltsville location, which received substantial government assistance during the pandemic, the D.C. Swahili Village did not receive any such aid. According to the US Department of Labour, the food services industry is known for having one of the highest instances of wage theft. In the 2023 fiscal year, the Wage and Hour Division recovered over $29 million owed to nearly 26,000 food service workers, marking the third-highest amount of back wages recovered in low-wage, high-violation industries.

As part of the settlement agreement, Swahili Village will be required to submit reports to the attorney general's office in the coming years, demonstrating its compliance with D.C. labour laws.