Maryland Applicators, a District of Columbia-based construction company, will pay $835,000 after misclassifying employees as independent contractors, the Office of the Attorney General for the District of Columbia announced last week.
The company also employed dozens of misclassified workers and procured the services of hundreds of additional misclassified workers through subcontracts with other companies, according to the Attorney General’s office.
The settlement requires Maryland Applicators to pay $489,000 to the district and $346,000 to the affected workers, according to the office. The company must also change its practices to ensure that all workers hired for projects in the district are properly classified in compliance with district law and receive the wages and benefits they are legally owed. Additionally, Maryland Applicators agreed not to bid on or provide work under any District government contracts for one year.