The newest gay bar in D.C. is under scrutiny over unpaid wages. Former employees say there’s mismanagement. The owner blames investors.
WASHINGTON — The owner of the newest gay bar in D.C. admits there are still not enough money to compensate workers who helped open the business in early December.
RUSH Bar & Restaurant at 14th & U introduced a business model that offers a salary and a competitive benefits package to employees. Since opening its doors, employees who have been fired or are about to face termination, per the owner, say the bar has not paid them for weeks.
“We were sold on the vision,” said beverage experience manager Chris Williams. “Unfortunately, it ended up being snake oil.”
WUSA9 recently covered the complaints after the bar faced backlash over the lack of paychecks. The issues come after RUSH recently had its liquor license suspended over a bounced check, according to a cease-and-desist order form the DC Alcoholic Beverage and Cannabis Board, but it was renewed days later. Owner Jackson Mosley disputed allegations of insufficient funds and pointed to administrative issues instead.
Owner Jackson Mosley told WUSA9 that the 13 current employees, who he deemed loyal, are now getting paid hourly but not the promised salary. He admitted that he likely will have to backfill to meet their salary requirements.
Mosley is also accused of firing workers who have spoken up against the missed payday on December 15. He claimed the fires were not retaliatory, rather a decision made because of alleged misconduct and performance issues.
Despite these reasons, DC laws specify that they are still owed earned wages no later than the following working day. If an employer fails to pay the wages earned, “such employer shall pay, or be additionally liable to, the employee, as liquidated damages, 10 per centum of the unpaid wages for each working day during which such failure shall continue after the day upon which payment is hereunder required.”
“The law is the law and there are penalties associated with that and ultimately we’ll have to eat those penalties,” Mosley said. “I’d rather pay employees that are working and that have been professional.”
Still, Mosley said he will compensate everyone as long as customers come to the bar and help build revenue.
Williams said everyone performed duties outside of what they were hired for and were wanting answers. As of New Year’s Day, Williams and other employees are still waiting for a paycheck. During his interview with WUSA9, Williams never received a termination later. Mosley later confirmed Williams was terminated but has yet to be notified due to performance issues, which Williams denies.
“My fridge is empty,” Williams added. “There’s been the emotional distress I’ve been going through, the financial damage I’ve been going through and the psychological damage I’ve been going through. At least tell me a plan.”
When directly asked when the employees will be compensated, Mosley told WUSA9, “I wish I knew.” The day after the reported payroll issues, Mosley allegedly learned that investors froze funds meant to support payroll for the first few months as the business builds revenue. He claimed it was done weeks prior to the bar opening. While he has theories, Mosley acknowledged there are no investor funds to support full compensation.
“It’s beyond my control,” Mosley said. “If we lost that investor fund, there’s nothing I can do about it. They’re there to pay those first three months of payroll. It’s absurd to think that I would have revenue funds available when we first opened up the doors.”
Mosley told WUSA9 he does not know the names of all of the investors, especially since they are in a “syndicate.” The business license listed for the location of RUSH Bar lists nine beneficial owners, mainly LLC’s and corporations under Mosley. WUSA9 reached out to the other person who was disclosed for comment but hadn’t heard back.
WUSA9 also reached out to another investors and is pending a response.