Attorney General Karl A. Racine announced that the Office of the Attorney General (OAG) is investigating numerous District restaurants that use GratShare, a tip-distribution and administration app, for unlawfully charging employees fees to receive tips they have earned.
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Generally, under District law, employers, not employees, must pay for business expenses, including expenses for payroll and tip-distribution services.
Workers must be paid all wages earned, and employers may not take unlawful deductions or charge fees for expenses that benefit the employer.
OAG is encouraging restaurant workers who use the GratShare app to check whether they are being charged improper fees. If you are a restaurant worker being charged fees to collect your tips through GratShare, please contact OAG by calling (202) 442-9828 or emailing workers@dc.gov or trabajadores@dc.gov.
GratShare is an app used by restaurants to distribute tips to workers, and it charges fees for its service. OAG has found that many restaurants unlawfully pass these fees along to tipped workers, who may see small deductions each time they use the app to get paid.
OAG has already resolved one investigation into a restaurant that uses GratShare and has secured restitution for tipped workers who paid fees. The office also has multiple pending investigations concerning local restaurants that use the app, which it will vigorously pursue to protect District workers.
AG Racine commended a large restaurant group, Knightsbridge Restaurant Group, for cooperating with OAG’s investigation, voluntarily coming into compliance with the law, and making workers who paid fees whole.
Knightsbridge operates multiple restaurants in the District, including Rasika Penn Quarter, Bombay Club, and Modena. As part of a settlement with OAG, Knightsbridge discontinued its practice of charging tipped employees a fee of between $0.38 and $0.76 per shift to use GratShare.
Knightsbridge also agreed to pay $63,775.73 to hundreds of workers, which refunds 150% of GratShare fees these employees paid between 2019 and 2021, and will pay an additional $5,000 to the District.
Knightsbridge will distribute payments to eligible employees in January 2023. ■