Ashok Bajaj: The Restauranter Who Could Upend America’s Labor Landscape

Ashok Bajaj represents both the American Dream and the challenges facing high-end restaurateurs in today’s changing labor landscape. As the owner of Rasika, the acclaimed Indian restaurant in Washington D.C., Bajaj finds himself at the center of a contentious labor dispute that highlights the tensions between restaurant economics and worker expectations.

Bajaj’s story begins as an immigrant from New Delhi who struggled to pay his first mortgage when starting out in Washington. That humble beginning has transformed into remarkable success as the head of Knightsbridge Restaurant Group, which includes the prestigious Rasika restaurants in both Penn Quarter and West End locations, as well as Modena and other establishments.

His success, according to the Washington Post, is perhaps most visibly demonstrated by his recent $7.1 million purchase of a 10,600-square-foot luxury home in the Phillips Park neighborhood, complete with amenities like a built-in yoga studio, wine cellar, 14-seat movie theater, half basketball court, and full-size gym. The timing of this purchase, however, would become a point of contention in his labor dispute.

The Commission Model Controversy

At the heart of the current dispute is Bajaj’s decision to switch Rasika’s servers from traditional hourly wages plus tips to a commission-based system. This change occurred in July, coinciding with the District’s increase of the tipped minimum wage to $10 an hour.

Under the new system, servers receive a 13.5% commission on their net sales plus a percentage of any tips added beyond the 20% service charge applied to all checks. According to Bajaj, this model was implemented as a necessary response to rising labor costs:

“The way the city is going — from $8 to $10 to $12 to $18 [an hour] — there is no other way for us to survive but to change the tipping system, the payment system,” he explained.

Bajaj maintains that the change was made with worker input, claiming that servers at both Rasika locations voted for the commission model, while staff at his sister restaurant Annabelle chose an hourly plan.

Many Rasika Penn Quarter servers tell a different story. They allege that the system was imposed without meaningful consent, has reduced their earnings, and exempts them from overtime pay under the Fair Labor Standards Act provisions for commissioned workers.

Isa Duzova, a server and bartender, claims they were told: “Hey, if you don’t like it, the door is over there. It’s not going to change.” One anonymous server reported that most staff had actually voted for an alternative payment model offering $18 per hour plus a smaller percentage of sales, but were given the commission model anyway.

Pay records analyzed by The Washington Post show mixed results — while some servers earned more under the new system, others like Duzova saw their hourly earnings drop from $44.79 to $41.97. Importantly, Duzova also frequently worked more than 80 hours during two-week pay periods without receiving overtime.

The payment dispute has catalyzed a broader union organizing effort, with Rasika Penn Quarter workers becoming part of a Unite Here Local 25 campaign targeting five high-profile D.C. restaurants.

As the union campaign has developed, tensions have escalated. Workers allege retaliation, including reduced hours and the hiring of new servers who receive preferential treatment. Unfair labor practice complaints filed with the National Labor Relations Board allege that Knightsbridge has fired three Rasika workers who supported the union.

Halis Rodriguez, a former cleaner who was terminated, claimed Bajaj offered to pay her for information about employees involved in unionizing efforts—an allegation Bajaj denies.

Bajaj counters the union narrative by pointing to declining business—down 15% in January compared to the previous year—as justification for schedule changes. He also cites an anti-union petition allegedly signed by 58 of the restaurant’s 72 employees, suggesting that the majority of his staff opposes unionization.

“The law is clear: it is the employees — not the union, not politicians, not social media — that determine whether they want union representation. 80% of our employees have spoken, and their decision must be honored,” stated Rasika Penn Quarter in an official response.

Union representatives question the legitimacy of this petition, claiming it was obtained through “threats and intimidation” with at least one worker not permitted to fully read what they were signing.

The Broader Context

Bajaj’s approach mirrors strategies adopted by other restaurateurs facing similar pressures. Chad Mackay, CEO of Fire & Vine Hospitality in Seattle, implemented a commission model after calculating that Seattle’s minimum wage increases would have added $1 million to his payroll costs. However, Mackay emphasizes that his model was developed collaboratively with servers over several months, with a guiding principle of doing it “with them, not to them.”

The dispute has drawn the attention of D.C. officials, including Delegate Eleanor Holmes Norton, who wrote to Bajaj noting allegations that “Knightsbridge has attempted to block the formation of the union, including by firing employees who are union supporters.”

Despite the controversy, Bajaj remains committed to the commission model while indicating some flexibility: “I am a big fan of it,” he said. “I’m going to go educate them, and if they say, ‘No, we want to go back to $10 an hour,’ I will do so.”