D.C. workers win historic $3.75M wage settlement

Over 1,200 construction workers in Washington, D.C., would receive $3.75 million in restitution, a major victory for workers’ rights. The settlement, the largest of its kind in the state, involves Power Design and John Moriarty & Associates of Virginia.

The companies were accused of misclassifying workers as independent contractors, denying them sick leave and avoiding payroll taxes.

Both companies deny wrongdoing but have agreed to the settlement, which includes paying back wages and penalties.

The compensation is part of a broader effort by the D.C. Attorney General Brian L. Schwalb to enforce wage laws and protect workers’ rights. Since gaining authority in 2017 to pursue such cases, the D.C. office has secured over $30 million in wage theft settlements.