DC strip club sued for ‘routine' sexual harassment, wage theft, OAG says
WASHINGTON () — The owners of Cloakroom, a strip club in downtown D.C., are in hot water after D.C. Attorney General Brian Schwalb announced a lawsuit against them Tuesday, alleging they have created a hostile and exploitative work environment for female employees.
Cloakroom, located in the heart of Mount Vernon Triangle in Northwest, is owned by Antonios Cavasilios and Carlos Horcasitas and employs dozens of people – most of whom are women.
In Tuesday's announcement, the Office of the Attorney General (OAG) said that for years, Cavasilios and Horcasitas have maintained a workplace where female employees are 'routinely' subjected to sexual harassment, inappropriate touching, insults and physical assault.
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The OAG says that Cloakroom managers and employees, including Cavasilios, regularly sexually harass female employees by calling them demeaning, sexist names and touching them inappropriately.
'Owners and managers wield their hiring, firing, and scheduling power to maintain a coercive, exploitative workplace, preying on younger and less experienced workers in particular,' said the OAG, in part. 'On at least one occasion, Cavasilios himself sexually assaulted a club employee. None of the club's male employees experience this type of mistreatment and abuse.'
In addition, the complaint alleges that club management has stolen 'hundreds of thousands of dollars' in tips and wages from employees, failed to pay for overtime and all hours worked, failed to provide paid sick leave and retaliated against workers who spoke out.
In total, the OAG says the Cloakroom violated several D.C. laws, including the District of Columbia Human Rights Act, Minimum Wage Revision Act, Wage Payment and Collection Law, Consumer Protection Procedures Act, Sick and Safe Leave Act and Wage Transparency Act.
2025.03.11 DC v Cloakroom Complaint – FINALDownload
Schwalb said one way the club's owners have stolen wages is through 'Cloakbucks,' a Cloakroom-branded fake currency that management encouraged customers to use to tip. When the bucks were converted to real cash, the owners allegedly pocketed 10% of the earnings.
When the OAG began investigating the club, the bucks were discontinued.
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The document also alleges that Cloakroom and its owners steal wages by forcing entertainers to pay club managers 10-20% of their earned commission when they perform in private rooms, even though they are promised a fixed percentage commission, typically 40% of the amount charged to the customer.
In a statement sent to DC News Now, a Cloakroom representative said, 'We are reviewing the allegations of the District's lawsuit. We look forward to proving in court that we run an upstanding District business providing top-notch service to our customers and treat our employees with professionalism and dignity.'
Schwalb added that the lawsuit aims to bring the business into compliance with the District's civil rights, employment and consumer protection laws and seek damages for employees who were abused and denied tips, wages and paid sick leave.
'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. As the District's independent Attorney General, we will put an end to this type of exploitative combination of sexual harassment and wage theft,' said Schwalb. 'My office will always fight for the dignity, safety, and livelihood of District workers.'
The OAG asks former or current Cloakroom employees who have experienced or witnessed illegal conduct to call (202) 724-7730 or email workers@dc.gov or .
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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