Three companies based in D.C., one of which previously managed a Burger King franchise in the northwest area, are required to pay nearly $230,000 to their employees and the District to resolve accusations of violating worker protection laws, according to a statement from the D.C. Attorney General's Office on Thursday.
Wage Theft Busted Among D.C. Companies
As per a statement, Fetch Package, Inc., a delivery service alongside Potomac Food Company and Food Works Group, owes affected employees over $150,000 in total and $77,000 to the District to settle allegations of breaching the District's worker protection laws, which resulted in workers being deprived of overtime pay, timely final paychecks, and benefits such as paid sick leave and paid family leave.
Attorney General Schwalb affirmed that their office will persist in advocating for District workers, ensuring they receive their entitled pay and benefits under the law, and emphasized preventing unfair advantages for employers at workers' expense, aiming to restore District residents' earnings and promote fairness among businesses.
Fetch Package, Inc. collaborates with apartment complexes to manage package handling and delivery for residents. According to the OAG, Fetch misclassified 10 delivery drivers as independent contractors, depriving them of sick leave benefits and owed compensation under District employment regulations. According to a statement, Fetch will compensate impacted delivery drivers with over $100,000, allocate over $50,000 to the District, ensure the correct classification of all eligible workers, and furnish an annual report detailing the company's adherence to District law.
Potomac Foods Company managed a Burger King franchise on Connecticut Avenue Northwest until December 2022. District law mandates employers to pay terminated employees their final wages within 24 hours or the next business day. However, the OAG accused Potomac Foods of failing to provide final paychecks to workers after the restaurant closed promptly and neglecting to consistently compensate eligible employees with overtime premiums between 2020 and 2022. Potomac Foods will disburse $24,020.76 to affected workers and $22,500 to the District. The company must also provide annual reports for 2024 and any forthcoming District locations.
Food Works Group, a food systems and business consulting firm, came under scrutiny in February 2024 for allegedly misclassifying employees as independent contractors, neglecting to offer paid sick leave and Universal Paid Leave benefits, retaliating against a worker who reported the misclassification, and discriminating against a pregnant employee, contravening the District's Human Rights Act. Food Works Group will compensate impacted current and former employees with $28,000, allocate $5,000 to the District, rectify business practices to align with the District's labor laws and Human Rights Act, and furnish written certification of compliance to the OAG.
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Assistant Attorneys General Sarah Levine, Jude Nwaokobia, Zack Hill, and Workers' Rights and Anti-fraud Section Chief Graham Lake managed these cases.
The OAG's Workers' Rights and Anti-Fraud
The OAG's Workers' Rights and Anti-Fraud Section is committed to combating wage theft and safeguarding District workers. Since January 2023, the OAG has obtained over $10 million for workers and the District. Since acquiring authority to enforce wage theft regulations, the OAG has amassed over $25 million through investigations and legal actions against employers who breach District laws. The OAG's wage theft enforcement initiatives primarily target industries with large numbers of vulnerable workers, including construction, restaurants and hospitality, healthcare, and the gig economy.
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