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  • Verfico

Washington DC Companies face increased public risk due to Wage Theft.

Recently, Brian L. Schwalb, Washington DC’s Attorney General, filed a lawsuit against five of the area’s largest construction companies alleging them of misclassifying employed workers as independent contractors in order to cut costs and raise profits. The Office of the Attorney General is seeking both recompense for the unpaid workers and penalties for the offending companies.

According to Schwalb, this crime denies workers’ benefits such as paid sick leave and health care as well as allowing companies to pay them below minimum wage. While these methods may boast short term profits and help companies avoid taxes and insurance costs, the reputational and financial risk of lawsuits is too much for most companies to bear. Employers will be held accountable by the AG for Wage Theft that happens at any level of the labor supply chain. 

Since the beginning of 2023, Schwalb and his office has returned over $10 million to affected workers through lawsuits and investigations.

While Wage Theft can occur at all levels of the labor supply chain, Employers will be held accountable for Wage Theft that happens at any level. 

Now, more than ever, it is important for DC Companies to protect themselves from Wage Theft. Verfico aims to protect DC Companies from AG Schwalb’s agenda and the dangerous game of Wage Theft. Verfico offers proactive wage assurance technology that prevents wage theft by reconciling worker hours logged via its app or site access devices with actual payroll data from subcontractors. This ensures accurate payment and provides actionable insights on labor costs, compliance, subcontractor risk levels, and workforce demographics, helping clients measure their community impact effectively.

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