The District of Columbia Office of the Attorney General has reached a settlement of up to $1.7 million with a mechanical contracting company. The case involved allegations that construction workers were misclassified as independent contractors. According to the lawsuit, workers on several District projects were brought in through labor brokers and classified as independent contractors instead of employees. As a result, they were allegedly denied minimum wage, overtime, paid sick leave, and workers’ compensation coverage.
The settlement includes about $691,000 for roughly 500 affected workers and $1 million in penalties paid to the District. The contractor also agreed to new compliance practices, including collecting certified payroll reports from subcontractors and randomly auditing them. In a separate agreement, the general contractor on one of the projects committed to strengthening compliance throughout its subcontracting chain on future D.C. projects
Read more: Attorney General Schwalb Secures $1.7 Million in Connection with Misclassification of Construction Workers
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