D.C. Construction Firm to Pay $1.5 Million After Misclassifying Hundreds of Workers

December 12, 2025

Virginia-based construction contractor Brothers Mechanical Inc. has agreed to pay $1. 5 million after D.C. Attorney General Brian Schwalb found the company misclassified nearly 500 construction workers as independent contractors rather than employees on multiple Washington projects between 2020 and the present.

Who is affected

Nearly 500 construction workers who were misclassified and denied proper wages and benefits
Brothers Mechanical Inc., a Virginia-based construction contractor
Law-abiding contractors who compete fairly in the construction industry
The District of Columbia government
Subcontractors who supplied workers to Brothers Mechanical
Workers on major development projects in NoMa, Navy Yard, and Buzzard Point

What action is being taken

Brothers Mechanical is paying $1.5 million ($500,000 in restitution to workers and $1 million in penalties)
The D.C. Attorney General's office is enforcing the settlement agreement
Brothers Mechanical is overhauling its subcontracting practices under court supervision

Why it matters

This settlement addresses wage theft and worker exploitation that affects hundreds of construction workers in a city with rising living costs, ensuring they receive compensation they earned. The case tackles a systemic problem in the construction industry where misclassification creates unfair competitive advantages for companies that violate labor laws over legitimate businesses that properly classify and compensate their workers. The enforcement action and substantial penalties send a deterrent message to other companies considering similar practices while establishing stronger protections for vulnerable construction workers.

What's next

Brothers Mechanical must implement sweeping compliance conditions for the next three years, including requiring subcontractors to submit weekly certified payrolls, conducting random payroll audits, prohibiting retaliation against workers who raise concerns, and training employees to identify wage violations
The company must provide annual reports to the District documenting subcontractor compliance for three years
Restitution payments of $500,000 will be distributed to impacted workers

Read full article from source: The Washington Informer