DC orders Welch Mechanical to pay $1.7M for misclassifying 500 workers | The Locally Times
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The settlement pays $691,450 to about 500 construction workers and $1,000,000 in District penalties over independent contractor misclassification.
DC Attorney General Brian L. Schwalb announced October 13, 2026 that W.G./Welch Mechanical Contractors, LLC will pay up to $1,706,450 to resolve a workers' rights lawsuit filed by the Office of the Attorney General over the misclassification of construction workers. Under the settlement, Welch will pay $691,450 to about 500 harmed construction workers and $1,000,000 in penalties to the District, according to the October 13 press release. Welch will also change its subcontracting and payroll practices to comply with District law. In 2024, the Office of the Attorney General sued Welch, three labor brokers, and general contractor Whiting-Turner Contracting Company, alleging the companies illegally classified employees as independent contractors and deprived hundreds of District construction workers of wages and benefits owed under DC law. The lawsuit alleged that Welch sourced workers from labor brokers who misclassified them as independent contractors instead of employees to minimize labor costs. Misclassified workers were denied minimum wages, overtime pay, paid sick leave, and access to workers' compensation insurance, according to the press release. Welch performed mechanical services on major District projects, including installing HVAC systems, plumbing pipes and fixtures, and sheet metal work, on contracts worth tens of millions of dollars. One of its largest projects involved over 250 workers at the City Ridge mixed-use development on Wisconsin Avenue NW. Under a separate settlement agreement, Whiting-Turner will change its practices on DC projects to ensure compliance with District law throughout the subcontracting chain. The supplied release excerpt does not include a response from Welch or Whiting-Turner to the settlement terms.