D.C. Attorney General Announces $1.5M Settlement Agreement with Virginia-Based Mechanical & Plumbing Company

Attorney General Schwalb announced earlier this month that the District of Columbia (“District”) and Brothers Mechanical Inc. (“BMI”), a construction company specializing in mechanical and plumbing services, have entered into a Settlement Agreement (“Agreement”) to resolve allegations that from 2020 through October 2025, BMI entered into agreements with subcontractors that provided construction workers (“Subcontracted Workers”) at six District projects where the Subcontracted Workers were unlawfully classified as independent contractors and deprived of earned wages and benefits in violation of the District’s Workplace Fraud Act (“WFA”), Minimum Wage Revision Act (“MWRA”), and Sick and Safe Leave Act (“SSLA”), violations for which the District further alleged BMI is jointly and severally liable.  BMI denies the allegations.

BMI agrees to pay a total settlement amount of $1,500,000 comprising a “worker share” equaling $500,000 to be paid to Eligible Employees and a “penalty share” equaling $1,000,000 to be paid to the District.  The Agreement’s injunctive terms require BMI to implement specific processes, including three years of reporting to the Office of Attorney General (“OAG”), towards ensuring that all Subcontracted Workers under Covered Subcontractors hired for projects in the District are properly classified and compensated.  The Agreement defines Covered Subcontractors as subs with averaged annual gross receipts of less than $15,000,000 over the previous three years.

OAG’s Workers’ Rights and Antifraud Section is dedicated to fighting wage theft, protecting District workers, and ensuring that businesses in the District compete on a level playing field.  Workers who believe their rights have been violated or that they have experienced wage theft or other wage and hour violations can contact OAG by calling 202-724-7730 or emailing workers@dc.gov or trabajadores@dc.gov.