A construction firm will pay $350,000 to resolve allegations of independent contractor misclassification in the District of Columbia, according to the Washington DC attorney general.
Tricon Construction Inc. and four subcontractors allegedly misclassified 200 workers, denying them sick leave and other benefits, according to the attorney general’s office.
Tricon is a framing and drywall installation company. However, four of its subcontractors — Zepeda Drywall Inc., RJA Construction, G&O Drywall Inc. and SGA Construction Corp. — misclassified employees, according to the department.
“Under District law, construction workers are presumed to be employees, not independent contractors, and therefore are entitled to receive employee benefits like paid sick leave,” Attorney General Brian Schwalb said in a press release. “Tricon and its subcontractors unlawfully took advantage of workers by misclassifying them as independent contractors, depriving them of benefits to which they were legally entitled.”
Under the settlement, Tricon must pay $200,000 to impacted workers and pay $150,000 in civil penalties, according to the office. The company and its subcontractors also agreed to correct their business practices, and Tricon must require subcontractors to submit certified payroll reports to ensure compliance for four years. It must also conduct regular audits on all subcontractors hired for projects in the district.
The subcontractors are also parties to the settlement, according to the office.
SIA has reached out to Tricon for comment.
