D.C. Secures More Than $302K for Workers in Misclassification Crackdown

March 31, 2026

The D.C. Attorney General's Office has reached settlements with two drywall companies that illegally misclassified more than 100 construction workers as independent contractors rather than employees. Pedro & Pablo's Construction Company and DR Construction and Consulting will pay a combined total of approximately $303,000 in worker restitution and penalties to the District. The companies violated D.C. law by denying workers benefits such as paid sick leave, workers' compensation insurance, minimum wage protections, and overtime pay.

Who is affected

More than 100 construction workers in the District of Columbia
Pedro & Pablo's Construction Company, Inc. (Virginia-based drywall company)
DR Construction and Consulting, Inc. (Maryland-based construction company)
The District of Columbia government
Working families affected by wage theft and misclassification

What action is being taken

Pedro & Pablo is reclassifying its entire workforce as employees
Pedro & Pablo is submitting to monitoring by the Attorney General's office through 2027
DRCC is requiring certified payroll reports from subcontractors
DRCC is conducting random audits of subcontractors
The Attorney General's Workers' Rights and Antifraud Section is targeting industries where violations are common, including construction, hospitality, healthcare, and gig work

Why it matters

Worker misclassification constitutes payroll fraud that denies employees legal protections guaranteed under District law, including minimum wage protections, overtime pay, paid sick leave, and workers' compensation insurance. This practice unfairly reduces labor costs for companies while hurting working families who are already financially stretched, undermines fair competition among businesses, and deprives the District of tax contributions to unemployment insurance and workers' compensation systems. The enforcement action demonstrates accountability and helps ensure workers receive wages and benefits they are legally entitled to receive.

What's next

Pedro & Pablo will remain under monitoring by the Attorney General's office through 2027
DRCC will stop working with subcontractors that fail to demonstrate compliance or resolve misclassification claims with the District
Both companies will implement ongoing oversight and compliance measures to ensure proper worker classification and compensation
The Attorney General's office will continue enforcement efforts targeting industries with common violations

Read full article from source: The Washington Informer