Swahili Village, a prominent Kenyan-owned restaurant chain based in the United States, has reached a significant settlement agreement following accusations of wage theft and labor violations in Washington D.C. The settlement, totaling US$526,000 (approximately Sh68 million), concludes a prolonged legal battle dating back to August 2023.
Settlement Details
The settlement breaks down as follows:
- Restitution to Workers: Swahili Village will disburse US$260,000 (Sh33,930,000) to 72 workers who were underpaid, ensuring they receive compensation for wages owed.
- District Penalties: An additional US$197,600 (Sh25,786,800) will be paid in penalties to the district of Washington D.C. for violations related to minimum wage laws and labor practices.
- Claims Administration: US$69,000 (Sh9,004,500) will fund a claims administrator responsible for contacting affected workers and distributing settlement funds appropriately.
Allegations and Violations
The restaurant, co-owned by Kenyans Kevin Onyona and Emad Shoeb, faced allegations of paying workers as little as US$5 (Sh652) per hour, well below the mandated minimum wage in Washington D.C. Furthermore, employees were reportedly denied overtime pay, tips, and sick leave benefits, which are essential protections under labor laws.
Washington D.C. Attorney General Brian Schwalb condemned these practices, describing them as “egregious and systematic violations” that were allegedly part of Swahili Village’s business strategy rather than inadvertent errors.
Response from Swahili Village
In response to the settlement, Swahili Village expressed a commitment to rectifying past mistakes while emphasizing their dedication to business continuity and staff welfare. Kevin Onyona acknowledged the challenges faced during the COVID-19 pandemic, which contributed to operational difficulties for the restaurant.
“While not admitting wrongdoing, we are pleased to bring closure to this matter and affirm our strict adherence to the settlement terms,” stated Kevin Onyona. He emphasized that Swahili Village values its employees as integral to its success and pledged to prioritize their well-being moving forward.
Community Support and Future Initiatives
Throughout the pandemic, Swahili Village remained active in supporting the community by providing meals to frontline workers, including firefighters, police officers, EMS personnel, nurses, and doctors. This community involvement underscores the restaurant’s broader commitment to social responsibility beyond its commercial activities.
Looking ahead, Swahili Village aims to rebuild trust with its employees and the community by upholding labor standards and fostering a supportive workplace environment. The settlement marks a significant step in addressing past grievances and signals a renewed dedication to ethical business practices and employee welfare at Swahili Village.
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