Washington, D.C., Attorney General Brian Schwalb filed a lawsuit against five construction companies, claiming they used a widespread misclassification scheme to deny hundreds of workers their wages and benefits.
The Office of the Attorney General’s investigation found that the Whiting-Turner Contracting Company, Welch Mechanical Contractors, and three labor brokers (Mechanical Plumbing Crew, Ramirez Plumbing, and GINCO HVAC) violated Washington’s wage-and-hour laws.
“It is unacceptable for businesses operating in the District of Columbia to boost their profits by stealing from workers,” said Schwalb.
The lawsuit alleges these companies attempted to reduce costs by unlawfully categorizing more than 370 workers as independent contractors, thereby depriving them of minimum wage, overtime pay, paid sick leave, and other entitled benefits.
According to Schwalb, these firms not only exploit workers but also gain an unfair competitive advantage over businesses that comply with regulations.
“My office will always have workers’ backs and ensure that all businesses in the District compete on a level playing field,” he said.
One of Welch Mechanical Contractors’s most prominent projects is the City Ridge mixed-use development on Wisconsin Avenue in Northwest Washington. This $715 million initiative will replace the former Fannie Mae campus.
Chuck Sewell, marketing director for the International Association of Sheet Metal, Air, Rail, and Transportation Workers union, explained that many nonunion contractors in the industry hire subcontractors known as labor brokers.
These brokers act as intermediaries between workers and construction companies, resulting in a diffusion of responsibility for workers’ conditions, rights, and welfare.
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“They misclassify workers to avoid paying taxes, workman’s compensation insurance, and many other things they are required by law to pay,” Sewell added.
Through this lawsuit, the OAG aims to secure restitution for affected workers, impose court penalties on these companies, and enforce compliance with Washington’s Workplace Fraud Act, Minimum Wage Revision Act, and Sick and Safe Leave Act.
