Attorney General Schwalb Secures $1.5 Million from Construction Company for Wage Theft Scheme

Posted by National Alliance for Fair Contracting on

December 9, 2025

Brothers Mechanical Inc. Illegally Misclassified Hundreds of Construction Workers, Depriving Them of Overtime Wages, Paid Sick Leave, and Other Benefits

Attorney General Brian L. Schwalb today announced that Brothers Mechanical Inc., a construction company that has worked on large development projects in NoMa, Navy Yard, and other DC neighborhoods, will pay $1.5 million to resolve allegations that the company and its subcontractors misclassified hundreds of workers as independent contractors, depriving them of wages and benefits they were legally entitled to.

Under the terms of a settlement agreement resolving an investigation by the Office of the Attorney General (OAG), Brothers Mechanical will pay $500,000 to impacted workers and $1 million to the District in penalties. The company will also be required to change its subcontracting practices and submit to compliance monitoring for three years.

“DC workers are the backbone of our economy, and especially at a time when the cost of living in DC continues to rise, I will continue to prioritize ensuring that workers receive the wages and benefits they have earned,” said Attorney General Schwalb. “This settlement puts money back in the pockets of hundreds of construction workers and sends a clear message that businesses will face consequences when they break the law, cheat workers, and undercut law-abiding competitors.”

“When companies illegally label employees as independent contractors, or misclassify them to a lower standard, they avoid paying proper wages, benefits, workers’ compensation, and payroll taxes. This is all-too common in the construction industry, and creates an uneven playing field where law-abiding contractors, who invest in trained workers and follow all regulations, are undercut by those cutting corners,” said Chuck Sewell, Marketing Director for the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART) Local 100. “We thank Attorney General Schwalb and his team at the OAG’s office for working to ensure the industry is safe and fair for all contractors and workers in the District.”

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Attorney General Schwalb Secures $725,000 for Construction Workers and DC In Wage Theft Settlement

Posted by National Alliance for Fair Contracting on

December 3, 2025
Christian Siding Will Pay More Than $364,000 to 229 Construction Workers and $360,000 in Penalties to DC

Attorney General Brian L. Schwalb today announced that Christian Siding, a construction company that has worked on projects across DC, must pay $725,000 to resolve allegations that the company failed to pay “prevailing wages” to workers on three publicly-funded affordable housing projects and misclassified workers as independent contractors on 13 additional projects. The Office of the Attorney General (OAG) also alleged that Christian Siding deprived these workers of overtime wages and benefits, like paid sick leave and overtime pay, that they were legally entitled to.

Under the terms of a settlement agreement, Christian Siding will pay more than $364,000 to 229 harmed workers, as well as $360,000 in penalties to the District, and will be required to make significant changes to its business practices and submit to compliance monitoring for two years.

“Failing to pay the required prevailing wage cheats both workers and DC taxpayers out of the full financial benefits of publicly-funded projects,” said Attorney General Schwalb. “In DC, legal accountability for prevailing wage violations extends all the way up the contracting chain—if your company or any of its subcontractors are underpaying workers, all of you can be held accountable. This settlement puts money back where it belongs and ensures that all construction firms in DC compete on a level playing field.”

What Are “Prevailing Wages”?

Federal and DC law establish wage floors for different types of skilled construction workers on taxpayer-funded and taxpayer-subsidized projects—meaning that companies on these projects must pay workers at a rate higher than the local minimum wage and must either provide “fringe benefits” like health insurance or pay an additional hourly rate for benefits compensation. Failing to pay required “prevailing wages” deprives workers’ of wages they have earned—and deprives taxpayers and the local workforce of the full benefits of the District’s investments in affordable housing.

Settlement Background

Christian Siding is a Virginia-based construction company specializing in building exteriors, including siding, roofing, doors, and windows, that has worked on construction projects across the District of Columbia and in neighboring states.

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