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

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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

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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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AG Nick Brown launches Worker Rights Unit to enforce protections, fight exploitation

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FOR IMMEDIATE RELEASE:

Attorney General Nick Brown today announced the creation of a Worker Rights Unit to lead the effort to uphold Washington state’s nation-leading worker protections and address wage theft.

“Our office’s new Worker Rights Unit will be able to support the working people of our state, as they face increasing challenges to maintain quality jobs and an affordability crisis,” Brown said. “National studies show that employers steal as much as $50 billion a year from workers. This unit will fight to even the playing field for Washington workers and hold corporations accountable that exploit their workers.”

At the federal level, there has been a systematic dismantling of the U.S. Department of Labor (DOL) and an abandonment of any pretense of protecting workers. The current administration has defanged and defunded enforcement of wage laws, ended enforcement of the minimum wage for federal contractors, and cut 20% of DOL staff. They are giving a green light to bad actors to exploit their workers, but Washington state will step up to fill the gap.

“Washington’s labor movement has fought hard to ensure our state’s laws protect all working people. But laws are only as good as their enforcement. Too often, bad bosses use their power to deny workers their rights,” said Washington State Labor Council President April Sims. “We’re heartened to see Attorney General Nick Brown stand up a unit dedicated to ensuring workers are paid the wage they’ve earned, are able to exercise their rights, and are respected on the job. The hardworking people of Washington deserve nothing less.”

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New Report: Union Apprenticeships Powering Workforce Growth in California Construction Industry

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AP News – Published 6:31 AM EDT, October 22, 2025

SACRAMENTO, CA, UNITED STATES, October 22, 2025 / EINPresswire.com / — The annual number of California workers graduating registered apprenticeship programs in the construction trades has surged nearly 62% over the last decade, according to a new study released by industry watchdog NorCal Construction Industry Compliance (NCIC). In particular, the report details how union-affiliated apprenticeship programs have led the industry’s efforts to expand and diversify its labor force–finding that these programs train nine out of every ten registered construction apprentices in the state, including 96% of female construction apprentices, 95% of black apprentices, and 94% of Hispanic apprentices. It notes that union programs also graduate workers at a higher rate than four-year colleges, deliver average annual wages that rival workers with college degrees, and offer participants average annual wage increases that have kept pace with inflation.

Read the Report, “Crafting Careers: Registered Apprenticeship in California ’s Construction Industry.”

Registered apprenticeships are a tuition-free workforce development system, where programs must meet nationally recognized standards established by the US Department of Labor to provide participants with portable, industry-recognized credentials. Depending on the trade, programs can take up to five years to complete, combining a mix of classroom and on-the-job training for which participants earn a paycheck. California has the nation’s largest registered apprenticeship system, and over 63% of its apprentices are in the fast-growing construction industry, which employed 4% (nearly 700,000 workers) of all California workers and contributed $129 billion to the state’s GDP in 2024.

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New Report – Clean Energy, Lost Wages Bridging the Community Solar Jobs Gap in Illinois

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Climate Jobs Illinois has released a new study entitled “Clean Energy, Lost Wages; Bridging the Community Solar Jobs Gap in Illinois“, an executive summary for the report has been provided below.

Executive Summary

Since Illinois passed the Climate & Equitable Jobs Act (CEJA) in 2021, ratepayers invested heavily in building a strong clean energy economy instate. But instead of delivering jobs and training opportunities for Illinois workers, community solar projects – small, offsite, subscriber-based arrays supported by state energy incentives – have too often relied on out-of-state crews, sending paychecks and training elsewhere.

Community solar lets households, small businesses, and public entities subscribe to electricity from a shared solar project and receive bill credits – no rooftop required. In Illinois, most community-solar projects participate in Illinois Shines, the state’s incentive program that awards renewable energy credits (RECs) to approved projects. Those RECs are purchased with ratepayer dollars, which means Illinois customers are funding the build-out of these projects in exchange for clean energy and consumer benefits. Our research indicates that 60 percent of community solar projects in Illinois are being built by out-of-state contractors, and more than four out of five of those workers (82.6 percent) are from outside of Illinois. Illinois ratepayers are purchasing clean power and subsidizing a large share of jobs that do not land in our communities. Instead, the paychecks from those projects pay rents and mortgages for workers in at least 36 other states. Meanwhile, community solar projects built under union project labor agreements (PLAs) – staffed almost entirely by Illinois residents (94 percent) – are few and far between. What does this cost us? Using the final 2025–26 Illinois Shines block sizes for all community solar projects and the U.S. Department of Energy’s latest industry cost benchmarks, we estimate that almost $100 million in construction wages will be exported out of Illinois this program year. Because community solar blocks frequently open fully subscribed each year with a substantial waitlist rolling forward, these lost paychecks and apprenticeship hours will continue year after year without policy changes

This has implications for Illinois’ equity goals too. Because Illinois’ Minimum Equity Standard (MES) relies heavily on in-state residency criteria to identify Equity Eligible Persons (EEPs), out-of-state crews are less likely to meet the state’s strict equity goals. Three of the core EEP pathways are Illinois residency-based (living in communities eligible for the state’s Restore, Reinvest, and Renew (R3) program, living in an Illinois environmental justice community, or participating in a CEJA workforce program), while the remaining pathways are formerly incarcerated or foster-care graduates. When projects rely on out-of-state crews, those workers are ineligible for the residency–based EEP pathways by definition. Meanwhile, contractors that are majority owned or controlled by EEPs are assumed in full MES compliance – another reason that Illinois-based workforce and ownership matter for meeting equity goals. The solution is simple: lower the PLA threshold to cover community solar projects under 5 MW. Illinois designed CEJA to create clean energy and good jobs. PLAs improve job quality and significantly increase the likelihood that projects are staffed by local workers – keeping with CEJA’s goal for in-state workforce development – regardless of where the prime contractor is based. Lowering the PLA threshold would turn ratepayer investments into more family-sustaining paychecks for Illinois workers, while also building in-state contractor capacity and upholding the spirit of CEJA: Illinois ratepayer dollars supporting Illinois workers and businesses.

CLIMATE JOBS ILLINOIS
OCTOBER 2025

Report: Wage theft, sexual harassment rampant for Minneapolis’ non-union construction workers

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By Stephen Swanson
 / CBS Minnesota

A new report says the city of Minneapolis needs to act to end wage theft and sexual harassment in the non-union construction industry.

The report from North Star Policy Action claims many of Minneapolis’ construction workers face routine labor abuses, wage theft, unsafe working conditions, gender-based violence and labor trafficking.

Members of North Star Policy Action, Centro de Trabajadores Unidos en la Lucha (CTUL) and dozens of workers gathered Wednesday at Minneapolis City Hall to push for action amid the report’s findings.

María Contreras, a construction worker and CTUL member, spoke about her personal experience with wage theft.

“I have a memory of sitting in my bed, looking at my empty bank account and not understanding how it can be,” Contreras said in Spanish, read in English by CTUL co-director Merle Payne. “It was impossible to pay my bills even though I was working so much.

“According to a 2021 report from the Midwest Economic Policy Institute, one in every four construction workers have experienced some form of wage theft.

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Five Orlando Residents Indicted For Scheme To Facilitate Evasion Of Payroll Taxes And Workers’ Compensation Requirements In Construction Industry

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U.S. Attorney’s Office, Middle District of Florida
Thursday, October 24, 2024

Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of two indictments charging Eduardo Anibal Escobar (44), Carlos Alberto Rodriguez (45), Adelmy Tejada (56), Rene Mauricio Escobar (53), and Juana Nelida Escobar (45), all residents of Orlando, with conspiracy to commit wire fraud and conspiracy to commit tax fraud. Each wire fraud count carries a maximum penalty of 20 years in federal prison and each tax fraud count carries a maximum penalty of 5 years in prison. The indictments also notify the defendants that the United States intends to seek forfeiture of a total of at least $19 million as well as five residential properties located in Orlando, which are proceeds of the alleged wire fraud offenses.

According to the indictment, the defendants established companies that purported to supply labor for construction contractors. Florida law requires any business that engages in construction work to secure and maintain workers’ compensation insurance. The defendants applied for workers’ compensation insurance policies to cover a few employees and a minimal payroll. The defendants then entered into agreements with construction work crews, often consisting of undocumented aliens, pursuant to which the defendants submitted paperwork to construction contractors to obtain work for the work crews, falsely representing that the workers were the companies’ employees. The workers then performed construction work under the supervision and direction of the contractors.

The contractors wrote payroll checks to the defendants’ companies for this work and provided the checks to work crew leaders. The checks were deposited into bank accounts in the name of the defendants’ companies and the defendants withdrew cash, and sometimes wrote checks, for the workers’ pay and provided the cash and checks to the work crew leaders. However, before turning over the payroll, the defendants deducted a 6% to 8% fee for their services. The funneling of payroll from the contractors to the work crews in this way allowed the contractors and the work crews to disclaim responsibility for ensuring that required payroll taxes were paid, that adequate workers’ compensation insurance was provided, and that the workers were legally authorized to work in the United States.

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Department of Labor seeks Kentucky highway construction industry’s input to set accurate prevailing wage, fringe benefits for workers

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Wage and Hour Division
October 28, 2024

The U.S. Department of Labor encourages employers and others in Kentucky’s highway construction industry to complete a statewide prevailing wage rates survey to help its Wage and Hour Division establish accurate pay and fringe benefits for workers on federally funded and assisted construction projects.

The Davis-Bacon and Related Acts require the department to set the prevailing wage rates that reflect the actual wages and fringe benefits paid to construction workers in the county where the work occurs.

The survey asks participants to provide information on wages employers paid on highway projects in Kentucky where construction occurred from Nov. 4, 2023, to Feb. 4, 2025. Not limited to federally funded construction projects, survey findings help the division in publishing accurate prevailing wage and fringe benefit rates in areas surveyed. Correct determinations also save contractors time spent requesting additional labor classifications. The department encourages all industry employers and stakeholders to participate.

The division strongly encourages online survey completion by Feb. 4, 2025, and will send notification letters to interested parties and contractors known to the agency with directions on how to access and complete the survey. To request a survey by mail or receive more information, contact the division’s Davis-Bacon Survey Center at (866) 236-2773 or email Davisbaconinfo@dol.gov.

Learn more about the surveys.

The Wage and Hour Division will provide two online briefings at no cost to employers and stakeholders to learn more about the survey process and obtain instructions for survey completion on Nov. 6 and Nov. 7, 2024. Register here to attend an upcoming briefing.

 

Register Now (11/21) EARNTalk: Advancing Equity and Worker Power in Apprenticeship Systems in Your State

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November 4, 2024

High-Road Pathways to Union Construction Jobs: Advancing Equity and Worker Power in Apprenticeship Systems in Your State
2-3 pm ET, Thursday, November 21

Register here: Register

Celebrate National Apprenticeship Week with a discussion of state strategies for expanding high-road apprenticeship training systems. Right now, massive federal clean energy and infrastructure investments are spurring demand for skilled trades workers. Making sure these new jobs are good union jobs will require expanding access to registered apprenticeship programs, especially for Black, brown, and women workers historically excluded from many skilled trades occupations. How can state advocates and labor partners seize this moment of opportunity to advance worker power and equity in construction jobs?

Our line-up of experts will cover key questions including:
What is a registered apprenticeship? What’s the “union difference” in apprenticeship training, and how can state advocates partner with building trades unions to expand high-road training programs?
How do federal and state policy frameworks shape apprenticeship systems, and what do data show about current trends in apprenticeship training?
What opportunities exist to leverage federal funds to strengthen and expand apprenticeship programs that lead to good union jobs?

Speakers will include:
Melissa Wells, North America’s Building Trades Unions (NABTU)
Erin O’Brien-Hofmann, Finishing Trades Institute, Philadelphia
Russ Ormiston, Institute for Construction Employment Research (ICERES)
Steve Herzenbeg and Claire Kovach, Keystone Research Center

Join us to learn more about registered apprenticeship, strategies for expanding access to high-road apprenticeship training, and data that can inform work to achieve better job quality and more equitable outcomes for women and people of color in your state’s construction industry.

USDOL to Offer Online Prevailing Wage Seminars in 2025

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Wage and Hour Division
October 21, 2024

Washington – The U.S. Department of Labor’s Wage and Hour Division will offer compliance seminars for contracting agencies, contractors, unions, workers and other stakeholders on the requirements for paying prevailing wages on federally funded construction and service contracts.

Part of the continuing effort by the division to increase awareness and improve compliance, the two-day seminars will offer sessions on the labor standards protections in the Davis-Bacon Act and the Service Contract Act, including how the department sets and administers prevailing wages and other topics. Participants can choose among the sessions offered either of the two days.

The upcoming seminars are scheduled on Nov. 13-14, 2024, and from March 18-19, June 25-26 and Sept. 24-25 in 2025.

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