D.C. Wins $279K Settlement Against Jan-Pro Over Misclassified Janitors, Illegal Fees

April 20, 2026

D.C. Attorney General Brian Schwalb reached a $279,000 settlement with Jan-Pro Franchising International and its regional operator over allegations that janitorial workers were improperly classified as independent contractors rather than employees. The lawsuit, filed in 2022, claimed the company's franchising model forced workers to purchase franchise agreements while maintaining strict control over their work, thereby denying them minimum wage, overtime, and paid sick leave protections. The settlement requires the companies to pay nearly $55,000 in restitution to affected janitors and over $224,000 in penalties while implementing significant operational changes in the District.

Who is affected

Dozens of janitorial workers who held cleaning contracts in Washington D.C. from July 2019 to present
Jan-Pro Franchising International Inc. and Nabicorp Enterprises Inc. (its regional operator)
D.C. Attorney General Brian Schwalb's office
Law-abiding competing businesses that were allegedly undercut by Jan-Pro's practices

What action is being taken

The companies are paying $54,800 in restitution to affected janitors
The companies are paying more than $224,000 in penalties and administrative costs to the District
Funds are being distributed to eligible workers based on participation and length of service
The Attorney General's Workers' Rights and Antifraud Section is targeting wage theft and misclassification across industries

Why it matters

This settlement matters because worker misclassification allows companies to illegally avoid critical obligations including minimum wage protections, overtime pay, paid sick leave, payroll taxes, unemployment insurance, and workers' compensation contributions. These practices shift financial burdens onto vulnerable workers while giving non-compliant companies an unfair competitive advantage over law-abiding businesses. The case is part of broader enforcement efforts that secured more than $5.8 million for workers and the District in the past year, demonstrating systematic problems with misclassification that require ongoing attention and accountability.

What's next

Janitors will be allowed to negotiate key work terms directly with customers, including hours, start and end times, and pricing
The company's ability to inspect job sites will be limited
Workers will be allowed to choose where they purchase equipment and supplies
Noncompete provisions will be removed, allowing janitors to pursue independent cleaning work and build their own client base
Most fees for declining contracts will be eliminated

Read full article from source: The Washington Informer