Two cleaning companies operating in the District of Columbia have agreed to pay $290,000 to resolve allegations that they systematically failed to pay legally required overtime wages to hundreds of hotel housekeepers.
Attorney General Brian L. Schwalb announced that Mardone Inc., which does business as J&B Cleaning Services and Cuzco Facilities Services, LLC, will provide $215,000 in restitution to 323 current and former workers and pay $75,000 in civil penalties to the District.
The Office of the Attorney General (OAG) launched an investigation after receiving a tip from UNITE HERE Local 25, the union that represents hospitality workers. Investigators found evidence showing that, from January 1, 2021, through this year, employees who worked for both companies in the same workweek often were not paid time-and-a-half for hours worked over 40, as required by the District’s Minimum Wage Revision Act and the Wage Payment and Collection Law.
“Especially as the cost of living continues to increase and working families struggle to make ends meet, I will continue to fight to ensure that all Washingtonians receive the wages and benefits they are legally entitled to,” Schwalb said. “This settlement puts money back where it belongs—in the pockets of hard-working hotel housekeepers who, despite working physically demanding jobs, were not paid the overtime wages they had earned.”
According to the settlement agreement, J&B and Cuzco, which share common ownership and management, will hire a third-party administrator to manage the claims process and distribute payments. Workers who file claims within 90 days of notification will receive approximately three times the amount initially withheld in wages. Undistributed funds will be turned over to the District.
The companies have also agreed to train managers about overtime laws, provide clear notice to non-management employees in both English and Spanish about their right to overtime pay, and submit a compliance report within 13 months documenting all hours worked and overtime paid.
“UNITE HERE Local 25 applauds the DC Office of the Attorney General for its investigation into J&B Cleaning Services related to wage theft,” said Linda Martin, president of UNITE HERE Local 25. “The settlement should send a warning to other companies that contract with DC hotels: there are consequences if you disrespect workers and fail to pay them what they’ve earned.”
J&B and Cuzco denied the allegations in the agreement and did not admit liability or wrongdoing.
Workers and members of the public who suspect wage theft or violations of District labor laws can file a complaint with the Office of the Attorney General by visiting oag.dc.gov.
“I encourage anyone who has experienced wage theft, or who is aware of any violations of the District’s labor laws, to file a complaint with my office,” Schwalb said.
