In December 2025, D.C. Attorney General Brian Schwalb announced a $1.5 million settlement against Brothers Mechanical Inc., a construction company that misclassified hundreds of workers as independent contractors on major development projects across Washington, D.C. The case is a sharp reminder that worker misclassification carries real financial consequences for employers and real harm for the workers affected by it.
The Case Against Brothers Mechanical
Brothers Mechanical, an HVAC and plumbing contractor that has worked on large development projects in NoMa, Navy Yard, and Buzzard Point, used subcontractors to staff roughly 500 workers on D.C. projects from 2020 through 2025. According to the D.C. Office of the Attorney General, those workers were classified as independent contractors rather than employees.
That meant no overtime pay, no paid sick leave, no workers’ compensation, and a larger personal tax burden. Under the settlement, Brothers Mechanical must pay $500,000 to impacted workers and $1 million in penalties to the District, overhaul its subcontracting practices, and submit to three years of compliance monitoring.
Why Misclassification Keeps Happening
Construction is one of the industries where misclassification is most common. The financial incentive is significant. When a company classifies workers as independent contractors, it avoids paying overtime premiums, unemployment insurance contributions, workers’ compensation coverage, paid sick leave, and its share of payroll taxes.
Those savings add up fast on large projects with hundreds of workers. But D.C. has been aggressive about enforcement. Since 2015, the OAG has secured over $39 million through investigations and enforcement actions, and the penalties can far exceed whatever a company saved by cutting corners.
A Washington, D.C. independent contractor misclassification lawyer can help both workers and employers understand their rights and obligations under District law.
How to Tell if You’ve Been Misclassified
Many workers don’t realize they’ve been misclassified until something goes wrong. They get hurt on the job and discover they don’t have workers’ compensation, or they file for unemployment and find out they’re not in the system.
The legal test depends on the actual working relationship, not what the company calls it on paper. Courts and regulators in D.C. look at whether the company controls how and when the work gets done, whether the worker provides their own tools, and whether the worker has a genuine opportunity to profit or lose money independently. If a company tells you where to show up, when to show up, and how to do the work, you’re probably an employee.
What D.C. Law Says
Washington, D.C. has some of the strongest worker protection laws in the country. The D.C. Wage Payment and Wage Collection Law, the Sick and Safe Leave Act, and the Workplace Fraud Act all protect employees but not independent contractors. When companies misclassify workers, they sidestep all of those protections at once. The District treats misclassification as a form of fraud, which is why the Brothers Mechanical penalties included both restitution to workers and a $1 million payment to the District.
Workers in Washington, D.C. who suspect they’ve been misclassified should know that a Washington, D.C. independent contractor misclassification lawyer can evaluate their situation and explain what options are available.
What This Means Going Forward
D.C.’s Attorney General has secured more than $23 million for workers and the District since January 2023 alone. That pace of enforcement isn’t slowing down. Construction, restaurants, healthcare, and gig economy companies remain the primary targets, and the OAG has made it clear that it will continue investigating companies that misclassify workers to reduce labor costs.
If you’re a worker who believes you’ve been improperly classified, or an employer who wants to make sure your workforce classifications are correct, getting legal guidance now is the smart move. Eric Siegel Law represents workers and businesses in employment disputes across Washington, D.C., and we can help you understand where you stand and what steps to take next.