A Maryland-based construction company that operates in the District will pay $835,000 to the city to resolve allegations that it intentionally misclassified employees as independent contractors to avoid paying sick leave and other employment benefits to which they were legally owed, D.C. Attorney General Brian L. Schwalb said Tuesday.
Additionally, as a part of the settlement, Maryland Applicators, a company that provides construction services on projects in the city, agreed not to bid on or provide work under any D.C. government contracts for one year.
“Maryland Applicators denied District workers the sick leave and other employment benefits they had earned by misclassifying them as independent contractors than employees,” Schwalb said. “This not only cheated the workers but gave Maryland Applicators an unfair advantage over their competitors who follow the law. My office is committed to protecting District workers, ensuring they receive the wages and benefits they are legally owed, and leveling the playing field for all law-abiding businesses.”
As a result of the settlement, Maryland Applicators must pay $835,000 with $489,000 paid to the District and $346,000 paid to the affected workers. In addition, the company must change its practices to ensure all workers hired for District projects are properly classified in compliance with city law and receive the wages and benefits they are legally owed.
