Misclassified Independent Contractors to Receive $2.75M to Resolve Wage Lawsuit

Independent Contractors represented by the Office of the Attorney General (“AOG”) that sued a national electrical contracting company for allegedly misclassifying them will now receive millions to resolve claims that they were not paid correctly. The contracting company,Power Design, has agreed to settle with the AOG for the District of Columbia for unpaid wage claims that total $2.75 million. This amount will be distributed between approximately 500 affected workers, the District of Columbia’s litigation fund, as well as job training and workforce development opportunities for District residents.

The lawsuit against Power Design and its subcontractors alleged several wage violations. In addition to misclassifying its workers as independent contractors when they should have been classified as employees, they failed to keep accurate payroll records. The company also failed to and pay minimum wage to its workers as well as allegedly failing to pay them overtime at 1.5 times their regular hourly rate. Often times companies improperly elect to classify workers as independent contractors instead of employees in order to cut costs on wages as well as not having to pay employee benefits. In this case, Power Design was also accused of failing to provide paid sick leave and failing to pay employer contributions.

If you find yourself working long hours as an independent contractor without overtime pay you may have a claim for owed wages. Even though your classification may be “the norm” in your industry, it does not necessarily mean it is legal. Call an employment lawyer now to discuss your rights and see if you my have a claim. Fitapelli & Schaffer, LLP offers a free and confidential phone consultation with one of our available representatives that will let you know if we may be able to assist you. You can call us at (212) 300-0375 or you can visit our website for additional information.