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As D.C. upholds tipped wage law, LGBTQ bar charts its own path

Spark Social rethinks its pay strategy as lawmakers block controversial I-82 plan

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Spark Social House has been open since March, and has always paid it's tipped workers higher than the minimum tipped wage in D.C.

Last week, the D.C. Council considered removing one of the most contentious ballot initiatives in D.C. government’s history — but for now, it stays.

In a 7-5 vote, an amendment to the D.C. budget — proposed by Ward 4 Council member Janeese Lewis George — ended the repeal of Initiative 82, keeping the incrementally rising tipped wage in the District.

In November 2022, D.C. residents overwhelmingly — at 73.94% — voted for the “District of Columbia Tip Credit Elimination Act of 2021” ballot measure (a.k.a. Initiative 82), which would slowly phase out the tipped wage in the District.

This act had a goal to increase the wages of everyone working in the District, promote wage fairness, and reduce wage theft by gradually raising the tipped minimum wage over five years. From restaurant owners’ perspectives, though, the act is doing more harm than good.

In many parts of the United States, people who earn a “tipped wage” are paid less than the minimum wage — with the expectation that the tips they earn on shift will make up the difference and ideally push them above the minimum. These tipped wages vary by state (or district), but are often significantly lower than the minimum wage.

In 2021, when this act was proposed, tipped workers made $5.05 per hour plus tips, while minimum wage workers earned $15.20 an hour. The ballot initiative passed with the hope that it would uplift those working in the service industry.

Since the initiative passed, there have been small increases to the tipped minimum wage in D.C. — rising to $6 in May 2023, $8 in July 2023, and then $10 in July 2024. Another $2 increase was scheduled for this July, but on June 3, the D.C. Council passed emergency legislation to pause the jump for 90 days.

Since the pause, there’s been pushback from both sides of the initiative picket line.

Supporters of Initiative 82 argue the measure prevents wage theft and ensures adequate income, especially as inflation and the cost of living continue to rise.

Opponents — most notably the Restaurant Association of Metropolitan Washington (RAMW) — claim the initiative will prompt “44% of full-service casual restaurants in D.C. [to] close by the end of 2025.”

At Spark Social House (2009 14th St NW), D.C.’s first nonalcoholic LGBTQ bar, the management team is rethinking not just what goes in the glass, but how staff are paid behind the bar. They opened in March of 2025, with Initiative 82 affecting how they pay their tipped staff.

“We actually started out paying minimum wage at $17.50 and then found that that was not actually sustainable,” owner Nick Tsusaki explained. “We had a group staff meeting, and decided to do $12 an hour for our hourlies, and then more for our managers on duty. We don’t have bar backs or any roles like that, so everybody just kind of makes the same amount.”

Rather than follow the traditional tipped wage system, Spark implemented a more collective structure designed to promote equity, while still allowing for the business to financially work.

“We’re just focused on ourselves. The way that our tips work is we pool tips over a two-week pay period, and then portion those out evenly based on the number of hours that you’ve worked in that two-week window,” Tsusaki said.

One key aspect of this step toward equity in tipped roles is their standard automatic gratuity charge.

“For us, it felt like the fairest way to distribute the tips was to do the 20% autogratuity to make it more equitable,” he said. “I went from bar back to business owner within the past two years so I’ve been in each of these positions. When I was looking to open Spark, I tried to think of how we could reimagine the payment system within the confines of what is possible as a business. And that’s what we came up with to try to make things feel more equally distributed.”

But for Tsusaki, Spark is about much more than margins and payroll — it’s about building community and offering something that goes beyond the drink itself.

“What I want people to understand is that what you’re paying for is not what’s in your cup – you are not paying for the actual value of this cup of coffee. We know that you can make that at home for free, basically. You are paying your portion of the rent, the utilities, the labor costs, insurance– all of these other costs that go into creating one of the 20 plus LGBTQ spaces in the city. I understand being frustrated about prices or tipping, but it’s more about understanding the larger business.”

Ultimately, that sense of building a space — with a dedicated mission inherently in its pay structure to provide for its staff members rather than an arbitrary sales quota goal — is another factor that distinguishes Spark.

“I think what we value, and understand is that what we have here is not just the best coffee, which we do, but it’s that we have this space that is so unique and versatile to host different groups and events. It feels really safe to people from all parts of the LGBTQ community – that is what our ‘product’ is, more than anything.”

D.C. Mayor Muriel Bowser, who initially opposed Initiative 82 in 2022, proposed a full repeal of the law in her 2026 budget, which was passed in May. Bowser cited multiple reasons for backing a repeal — echoing RAMW’s concerns over rising costs for restaurants, increased closures, and job losses.

The Washington Blade reached out to D.C. Council Chair Phil Mendelson prior to the vote to determine the fate of Initiative 82. His message was clear — he’s siding with the vote count.

“If the votes are there to repeal the initiative, I will leave it in,” Mendelson told the Blade. “If the votes are not there, I will take it out.”

The votes weren’t there, leading to a repeal of the repeal — and a slightly higher paycheck for tipped wage workers in the District.

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District of Columbia

Reasons to be optimistic about 2026

Local thought leaders offer hope for the New Year

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HRC President Kelley Robinson, gay D.C. Council member Zachary Parker, and Rayceen Pendarvis are among those who expressed optimism about 2026. (Washington Blade photos by Michael Key)

It was a year like no other. It began with Donald Trump’s inauguration in January 2025 and included a takeover of D.C. police, ICE raids, challenges for the local economy, and other events that have many queer Washingtonians ready for 2026.

As we prepare to welcome the New Year, the Blade asked a range of local thought leaders  about what makes them optimistic for 2026. Here are their responses.

June Crenshaw

Deputy Director, Capital Pride Alliance

What gives me optimism for 2026 is the way our LGBTQIA2S+ community supports one another – across identities, neighborhoods, and movements – and because we continue to build our collective powers; we demand and create safer, more inclusive spaces.

Zachary Parker

Ward 5 DC. Council member

I’m optimistic about the upcoming elections and the District’s continued fight for local autonomy. One thing I know for sure is that Washingtonians are tough and persistent, and we’re ready to face any challenge as we keep fighting for D.C. statehood.

Sister Jeannine Gramick

Co-founder of LGBTQ supportive New Ways Ministry

As a nun who thinks politically about the Catholic Church, I’m extremely optimistic that Pope Leo XIV will continue to welcome LGBTQ people. At the conclave, most cardinals knew Pope Francis had (then) Cardinal Proost in mind!

Adam Ebbin

Virginia State Senator representing parts of Arlington, Alexandria, and Fairfax Counties

I am excited about 2026 bringing the return of the pro-equality governor to Virginia. I believe that Abigail Spanberger will be a champion for LGBT people and it will also be the year that we can finally pass the necessary legislation to send a constitutional amendment to the voters that would guarantee marriage equality in the Virginia Constitution.

Howard Garrett

President, Capital Stonewall Democrats

In 2026, our community can be optimistic because we’ve proven, again and again, that when we organize, we win: at the ballot box, in the courts, and in our neighborhoods. Even amid challenge, LGBTQ+ Washingtonians and our allies are building stronger coalitions, electing champions, and advancing real protections that make daily life safer and more affirming for everyone.

Paul Kuntzler

D.C. LGBTQ activist since the early 1960s, co-founder of Capital Stonewall Democrats

Last Nov. 4, 11 states held elections and Democrats won almost all of the elections. Next Nov. 3, 2026, Democrats will win control of both the House and Senate …An Economist poll reported  that 15 percent to 20 percent of those who voted for Trump no longer support him. The results of the elections of Nov. 3, 2026, will be the beginning of the end of Trump and his racist and criminal regime.

Kelley Robinson

President, Human Rights Campaign

This past year has brought relentless attacks against the LGBTQ+ community, but it has also shown the resiliency of queer folks. While this administration has worked tirelessly to oppress us, we’ve met that oppression with courage. As we step into 2026, my hope is that we carry that energy forward and continue protecting one another, fighting back against injustice, and celebrating queer joy. If  2026 is anything like 2025, we know the challenges will be intense, but our community is more determined than ever to meet hate with resilience, and to turn struggle into strength.

Freddie Lutz

Owner, Freddie’s Beach Bar in Arlington and Rehoboth Beach

I am optimistic that the current  president will fulfill his promise to boost the economy. We are all suffering – businesses in D.C. I just read it is 17 to 18 percent down. And I’m hoping the president will boost the economy. I always try to remain optimistic.

Nicholas F. Benton

Owner & Editor, Falls Church News-Press

My optimism stems from my belief in the human capacity and generosity of spirit. Those who are committed to those qualities will find a way.

Richard Rosendall

Former president, D.C. Gay & Lesbian Activists Alliance

MAGA efforts to demonize LGBTQ people are dangerous but will fail overall because understanding and acceptance have grown and endured. The blue wave in November 2026 will show this.

TJ Flavell

Organizer, Go Gay DC

Hope springs eternal. Nurturing your own wellness is vital to the New Year, including enjoying social and cultural activities through such groups as Go Gay DC – Metro DC’s LGBTQ Community. Also, 2026 ushers in a new tax deduction for charitable giving. Check the IRS website for details. You can make a positive impact in the New Year by supporting good charitable causes like the D.C. LGBTQ+ Community Center, a safe, inclusive, and affirming space where all members of our community can thrive.

Rayceen Pendarvis

Leader of Team Rayceen D.C. LGBTQ support organization 

I have experienced many trials and tribulations in my lifetime, throughout which my spirit has enabled me to find peace despite the turbulence around me. Being optimistic allows me to be a beacon of light for those who may be lost in the darkness.

Zar

Team Rayceen organizer

My reason for optimism is this: death. Life is a cycle of time, change, and destruction. Everything is impermanent; the time any person rules is finite and eventually all empires end.

DJ Honey

Team Rayceen supporter

Despite the noise, I see 2026 as a year where queer people continue choosing community over isolation. Even when challenged, our culture keeps evolving. We are more visible, more creative and intentional about building spaces that protect each other and center joy without asking permission.

Nick Tsusaki

Owner, Spark Social House, D.C. LGBTQ café and bar

I’m optimistic for 2026 because it feels like the tide is turning and we’re coming together as a community.

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District of Columbia

Rush reopens after renewing suspended liquor license

Principal owner says he’s working  to resolve payroll issue for unpaid staff

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Pictured is a scene from the preview night at Rush on Nov. 28. Rush reopened on Saturday after a brief closure. (Blade file photo by Michael Key)

The D.C. LGBTQ bar and nightclub Rush reopened and was serving drinks to customers on Saturday night, Dec. 20, under a renewed liquor license three days after the city’s Alcoholic Beverage and Cannabis Board suspended the license on grounds that Rush failed to pay a required annual licensing fee.

In its Dec. 17 order suspending the Rush liquor license the ABC Board stated the “payment check was returned unpaid and alternative payment was not submitted.”

Jackson Mosley, Rush’s principal owner, says in a statement posted on the Rush website that the check did not “bounce,” as rumors circulating in the community have claimed. He said a decision was made to put a “hold” on the check so that Rush could change its initial decision to submit a payment for the license for three years and instead to pay a lower price for a one-year payment.

“Various fees and fines were added to the amount, making it necessary to replace the stop-payment check in person – a deadline that was Wednesday despite my attempts to delay it due to these circumstances,” Mosley states in his message.

He told the Washington Blade in an interview inside Rush on Saturday night, Dec. 20, that the Alcoholic Beverage and Cannabis Administration (ABCA) quickly processed Rush’s liquor license renewal following his visit to submit a new check.

He also reiterated in the interview some of the details he explained in his Rush website statement regarding a payroll problem that resulted in his employees not being paid for their first month’s work at Rush, which was scheduled to take place Dec. 15 through a direct deposit into the employees’ bank accounts.

Several employees set up a GoFundMe appeal in which they stated they “showed up, worked hard, and were left unpaid after contributing their time, labor, and professional skills to Rush, D.C.’s newest LGBTQ bar.” 

In his website statement Mosley says employees were not paid because of a “tax related mismatch between federal and District records,” which, among other things, involves the IRS. He said the IRS was using his former company legal name Green Zebra LLC while D.C. officials are using his current company legal name Rainbow Zebra LLC. 

“This discrepancy triggered a compliance hold within our payroll system,” he says in his statement. “The moment I became aware of the issue, I immediately engaged our payroll provider and began working to resolve it,” he wrote.

He added that while he is the founder and CEO of Rush’s parent and management company called Momentux, company investors play a role in making various decisions, and that the investors rather than he control a “syndicated treasury account” that funds and operates the payroll system.

He told the Blade that he and others involved with the company were working hard to resolve the payroll problem as soon as possible. 

“Every employee – past or present – will receive the pay they are owed in accordance with D.C. and federal law,” he says in his statement. “That remains my priority.” 

In a follow-up text message to the Blade on Sunday night, Dec. 21, Mosley said, “All performers, DJs, etc. have been fully paid.” 

He said Rush had 21 employees but “2 were let go for gross misconduct, 2 were let go for misconduct, 1 for moral turpitude, 2 for performance concerns.” He added that all of the remaining 14 employees have returned to work at the time of the reopening on Dec. 20. 

Rush held its grand opening on Dec. 5 on the second and third floors of a building at 2001 14th Street, N.W., with its entrance around the corner on U Street next to the existing LGBTQ dance club Bunker. 

With at least a half dozen or more LGBTQ bars located within walking distance of Rush in the U Street entertainment corridor, Mosley told the Blade he believes some of the competing LGBTQ bars, which he says believe Rush will take away their customers, may be responsible along with former employees of “rumors” disparaging him and Rush. 

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District of Columbia

New queer bar Rush beset by troubles; liquor license suspended

Staff claim they haven’t been paid, turn to GoFundMe as holidays approach

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A scene from the dance floor of Rush at a preview night on Friday, Nov. 28. (Washington Blade photo by Michael Key)

The D.C. Alcoholic Beverage and Cannabis Board on Dec. 17 issued an order suspending the liquor license for the recently opened LGBTQ bar and nightclub Rush on grounds that it failed to pay a required annual licensing fee.

Rush held its grand opening on Dec. 5 on the second and third floors of a building at 2001 14 Street, N.W., with its entrance around the corner on U Street next to the existing LGBTQ dance club Bunker. 

It describes itself on its website as offering “art-pop aesthetics, high-energy nights” in a space that “celebrates queer culture without holding back.” It includes a large dance floor and a lounge area with sofas and chairs.

Jackson Mosley, Rush’s principal owner, did not immediately respond to a phone message from the Washington Blade seeking his comment on the license suspension.  

The ABC Board’s order states, “The basis for this Order is that a review of the Board’s official records by the Alcoholic Beverage and Cannabis Administration (ABCA) has determined that the Respondent’s renewal payment check was returned unpaid and alternative payment was not submitted.”

The three-page order adds, “Notwithstanding ABCA’s efforts to notify the Respondent of the renewal payment check return, the Respondent failed to pay the license fee for the period of 2025 to 2026 for its Retailer’s Class CT license. Therefore, the Respondent’s license has been SUSPENDED  until the Respondent pays the license fees and the $50.00 per day fine imposed by the Board for late payment.”

ABCA spokesperson Mary McNamara told the Blade that the check from Rush that was returned without payment was for  $12,687, which she said was based on Rush’s decision to pay the license fee for four years. She said that for Rush to get its liquor license reinstated it must now pay $3,819 for a one-year license fee plus a $100 bounced check fee, a $750 late fee, and $230 transfer fee, at a total of $4,919 due.

Under D.C. law, bars, restaurants and other businesses that normally serve alcoholic beverages can remain open without a city liquor license as long as they do not sell or serve alcohol. 

But D.C. drag performer John Marsh, who performs under the name Cake Pop and who is among the Rush employees, said Rush did not open on Wednesday, Dec. 17, the day the liquor board order was issued. He said that when it first opened, Rush limited its operating days from Wednesday through Sunday and was not open Mondays and Tuesdays. 

Marsh also said none of the Rush employees received what was to be their first monthly salary payment on Dec. 15. He said approximately 20 employees set up a GoFundMe fundraising site to raise money to help sustain them during the holiday period after assuming they will not be paid.

He said he doubted that any of the employees would return to work in the unlikely case that Mosley would attempt to reopen Rush without serving liquor or if he were to pay the licensing fee to allow him to resume serving alcohol without having received their salary payment. 

As if all that were not enough, Mosley would be facing yet another less serious problem related to the Rush policy of not accepting cash payments from customers and only accepting credit card payments. A D.C. law that went into effect Jan. 1, 2025, prohibits retail businesses such as restaurants and bars from not accepting cash payments. 

A spokesperson for the D.C. Department of Licensing and Consumer Protection, which is in charge of enforcing that law, couldn’t immediately be reached to determine what the penalty is for a violation of the law requiring that type of business to accept cash payments.

The employee GoFundMe site, which includes messages from several of the employees, can be accessed here.

Mosley on Thursday responded to the reports about his business with a statement on the Rush website. 

He claims that employees were not paid because of a “tax-related mismatch between federal and District records” and that some performers were later paid. He offers a convoluted explanation as to why payroll wasn’t processed after the tax issue was resolved, claiming the bank issued paper checks.

“After contacting our payroll provider and bank, it was determined that electronic funds had been halted overnight,” according to the statement. “The only parties capable of doing so were the managers of the outside investment syndicate that agreed to handle our stabilization over the course of the initial three months in business.”  

Mosley further said he has not left the D.C. area and denounced “rumors” spread by a former employee. He disputes the ABCA assertion that the Rush liquor license was suspended due to a “bounced check.” Mosley ends his post by insisting that Rush will reopen, though he did not provide a reopening date.  

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