Attorney General Brian L. Schwalb has filed a lawsuit against Cloakroom and its owners, Antonios Cavasilios and Carlos Horcasitas, for alleged civil rights and employment law violations. The Office of the Attorney General claims the venue created a "hostile and exploitative work environment" where female employees faced sexual harassment, abuse, wage theft, and retaliation for speaking up or requesting leave, according to the Office of the Attorney General.
The Attorney General accused Cloakroom of violating multiple District laws, stating that "Cloakroom and its owners flagrantly disregard the most basic workplace protections and decencies, routinely subjecting female employees to degradation and abuse while deploying a variety of schemes to steal their pay." The Office of the Attorney General complaint alleges Cloakroom's owners withheld hundreds of thousands of dollars in wages and tips through deceptive practices, including the use of "Cloakbucks," a fake venue-specific currency. Violations cited include failing to pay proper overtime, forcing entertainers to pay commissions to managers, denying sick leave, and retaliating against employees by withholding security assistance.
The Office of the Attorney General has filed a lawsuit against Cloakroom for alleged violations of civil rights, employment, and consumer protection laws, seeking back wages, damages for affected workers, and civil penalties. The case is being handled by Assistant Attorneys General Sarah Michael Levine, Nadeen J. Saqer, and Christian F. Whitmer, along with Assistant Chief Dennis A. Corkery and Chief Alicia M. Lendon. Since 2023, Office of the Attorney General has recovered over $19 million for workers, with total recoveries exceeding $35 million from wage theft enforcement. Workers are encouraged to report wage theft, harassment, or discrimination to Office of the Attorney General.
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