National electrical contractor to pay $2.75 million to workers and the District for wage theft
Attorney General Karl A. Racine today announced that Power Design, Inc., a national electrical contractor, will be required to pay $2.75 million to workers and the District as part of a settlement in a wage theft and worker misclassification case.
“This settlement should be a wake-up call to District employers: if you cheat workers out of wages and benefits they’ve earned, or commit payroll fraud to gain an unlawful edge, you will be held accountable,” said AG Racine.
“We have been concerned about Power Design’s treatment of workers for many years now,” said Elizabeth Falcon Executive Director of DC Jobs with Justice, which began sounding the alarm about Power Design’s activities in DC in 2017. “DC has some of the best laws in the country that support and protect workers, and strong enforcement action like this show that we are serious about putting our values into practice for workers.”
The settlement resolves a 2018 lawsuit against Power Design and two subcontractors that staffed its worksites for allegedly misclassifying more than 500 electrical workers as independent contractors instead of employees to cut labor costs. OAG also alleged that Power Design cheated workers out of wages and benefits and failed to pay District unemployment insurance taxes. This settlement is OAG’s largest recovery to date in a wage enforcement action.
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