Brothers Mechanical Inc., a local construction company, will pay $1.5 million following an investigation revealing the company and its subcontractors misclassified workers as independent contractors, resulting in unpaid wages, D.C. Attorney General Brian L. Schwalb announced Tuesday.

Of the settlement, $500,000 will go directly to affected workers, while $1 million covers penalties imposed for violations of D.C. labor laws. The probe found that from 2020 to the present, Brothers Mechanical misclassified approximately 500 workers who were staffed on projects through subcontractors.

Attorney General Highlights Worker Protections

“This settlement puts money back in the pockets of hundreds of construction workers and sends a clear message that businesses will face consequences when they break the law, cheat workers, and undercut law-abiding competitors,” Schwalb said.

The agreement also requires Brothers Mechanical to implement sweeping reforms to prevent future violations. These measures include mandatory weekly payroll submissions from subcontractors, enhanced worker training to detect wage and hour violations, and ongoing compliance monitoring to ensure adherence to D.C. labor laws.

Ensuring Compliance Moving Forward

The settlement reflects the city’s commitment to protecting workers’ rights and holding companies accountable for labor law violations. By addressing misclassification, the city aims to prevent the underpayment of wages and level the playing field for law-abiding businesses in the construction industry.

Schwalb emphasized that the reforms and monetary penalties will serve as a model for future enforcement actions, demonstrating that violations will not be tolerated.