A Maryland construction company has agreed to pay $835,000 to settle a suit brought by D.C. alleging the company denied workers sick leave and other benefits by intentionally misclassifying them as independent contractors.
Maryland Applicators, which provides drywall installation services, was accused by the D.C. Office of the Attorney General of misclassifying dozens of workers it directly hired, as well as procuring the services of hundreds of other workers also improperly classified as independent contractors through subcontracts.
Misclassifying the workers as independent contractors allowed the company to deny them basic rights they would be entitled to as employees, such as the minimum wage, overtime pay and paid sick leave, according to a news release from the attorney general’s office.
It can also leave workers on the hook for a big tax bill, and deprives the District of tax revenue.
“This not only cheated the workers but gave Maryland Applicators an unfair advantage over their competitors who follow the law,” said D.C. Attorney Brian Schwalb in a news release. “My office is committed to protecting District workers, ensuring they receive the wages and benefits they are legally owed, and leveling the playing field for all law-abiding District businesses.”
Despite settling the case, the company denied that its practices violate District law, and the settlement agreement does not constitute an admission of wrongdoing.
Under the terms of the deal, the company will pay...
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