AG Schwalb announced that Brothers Mechanical Inc., a construction company that has worked on large development projects in NoMa, Navy Yard, and other DC neighborhoods, will pay $1.5 million to resolve allegations that the company and its subcontractors misclassified hundreds of workers as independent contractors, depriving them of wages and benefits they were legally entitled to.

Under the terms of a settlement agreement resolving an investigation by the Office of the Attorney General (OAG), Brothers Mechanical will pay $500,000 to impacted workers and $1 million to the District in penalties. The company will also be required to change its subcontracting practices and submit to compliance monitoring for three years. 

“DC workers are the backbone of our economy, and especially at a time when the cost of living in DC continues to rise, I will continue to prioritize ensuring that workers receive the wages and benefits they have earned. This settlement puts money back in the pockets of hundreds of construction workers and sends a clear message that businesses will face consequences when they break the law, cheat workers, and undercut law-abiding competitors.” – AG Schwalb