Maryland company settles with DC for $835K in suit over construction worker benefits – WTOP News

A Maryland development firm has agreed to pay $835,000 to settle a swimsuit introduced by D.C. alleging the corporate denied staff sick go away and different advantages by deliberately misclassifying them as impartial contractors.

Maryland Applicators, which gives drywall set up providers, was accused by the D.C. Workplace of the Lawyer Basic of misclassifying dozens of staff it straight employed, in addition to procuring the providers of tons of of different staff additionally improperly categorized as impartial contractors by subcontracts.

Misclassifying the employees as impartial contractors allowed the corporate to disclaim them primary rights they might be entitled to as staff, such because the minimal wage, additional time pay and paid sick go away, in line with a information launch from the lawyer common’s workplace.

It could additionally go away staff on the hook for a giant tax invoice, and deprives the District of tax income.

“This not solely cheated the employees however gave Maryland Applicators an unfair benefit over their rivals who observe the regulation,” mentioned D.C. Lawyer Brian Schwalb in a information launch. “My workplace is dedicated to defending District staff, guaranteeing they obtain the wages and advantages they’re legally owed, and leveling the enjoying discipline for all law-abiding District companies.”

Regardless of settling the case, the corporate denied that its practices violate District regulation, and the settlement settlement doesn’t represent an admission of wrongdoing.

Beneath the phrases of the deal, the corporate can pay $346,000 for use to offer restitution to staff, and one other $489,000 on to the District as a penalty. Schwalb’s workplace will determine staff eligible for restitution, who may obtain as much as $1,000 every.

The corporate additionally agreed to alter its practices to make sure that all staff employed for District initiatives are correctly categorized and agreed that it might not bid on any District contracts for one 12 months.

The D.C. Workplace of the Lawyer Basic gained the authority to implement wage theft violations in 2017, and has secured greater than $18 million in settlements since then.

A 2019 report on the District’s development business put collectively by the lawyer common’s workplace discovered that firms that misclassify staff keep away from no less than 16.7% in labor prices — and typically rather more — in comparison with law-abiding firms, giving them an unfair benefit.

Employees who imagine their rights have been violated, or that they’ve skilled wage theft or different wage and hour violations, can contact D.C. OAG by calling 202-442-9828 or emailing staff@dc.gov or trabajadores@dc.gov.

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