Hundreds of D.C construction workers are getting a payout after the Attorney general says they were the victims of an unlawful scheme. It’s the largest settlement of its kind in the District.
Experts say it’s a problem running rampant in the District, especially in construction, where some companies misclassify workers to keep costs low.
The Office of the Attorney General says Power Design, a major construction firm, will have to shell out $3.7 million dollars for misclassifying workers in order to save money.
“It’s going to return about $1.7 million to about 1,200 construction workers, so that’s the most important thing for us,” said Beth Mellen, the assistant deputy attorney general for the Office of the Attorney General’s Public Advocacy Division.
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She says this is the largest settlement of its kind. Power Design has hundreds of projects across the DMV, but prosecutors say they’ve been scheming to get out of paying workers what they should by calling them “independent contractors.”
“When an employer decides to treat folks as independent contractors, not workers, all of that falls on the worker, and so the worker doesn't get unemployment insurance or doesn't get paid sick leave,” Mellen said. “They have to deal with those issues themselves. That’s not fair to those workers.”
It’s not fair and not legal. Advocates say the common cost cutting practice costs workers big time.
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“Some of them are undocumented, and some of them are documented workers that just want to go out and make an honest day's pay for an honest day's worth of work, and the problem is you have the contractors that exploit them,” said Charles Sewell from Smart Local 100, which represents sheet metal workers.
The Office of the Attorney General says they’ve secured $14 million for D.C. workers since January of last year.
If someone thinks their employer isn't doing what they should, they can report it by calling (202) 724-7730 or sending an email.
“We really want to receive tips from the public and encourage folks to reach out, regardless of the size of your employer, if you think something is going wrong.”
The workers will have to go through the claims process before they can get paid.
