Maryland Federal Court Approves $370,000 Settlement in Construction Industry Wage-Theft Case
The United States District Court for the District of Maryland today approved a $370,000 settlement to resolve wage theft and misclassification claims brought by five construction workers against E&J General Construction, Inc. and Long Fence Company, Inc.
In the complaint filed by Murphy Anderson and Washington Lawyers’ Committee for Civil Rights and Urban Affairs, the workers alleged that E&J, and Long Fence through its business relations with E&J, shorted them of the required federal and state overtime and minimum wage rates and misclassified them as independent contractors, despite controlling all aspects of their work. The workers further alleged that they regularly worked 45–50 hours a week assembling and installing fences for residential construction worksites in Maryland and the District of Columbia but took home wages well below minimum wage and overtime requirements.
The workers were able to settle the case through mediation before Chief Magistrate Judge Timothy J. Sullivan. Under the settlement agreement approved by the Court, E&J and Long Fence are responsible for paying $370,000 to resolve the workers’ claims, with $305,000 to be distributed between the five workers and the remainder to cover attorneys’ fees and expenses. While E&J and Long Fence did not admit liability or wrongdoing, the settlement is a significant victory for the workers.
The workers are represented by Adam Breihan and Mark Hanna of Murphy Anderson and Sarah Bessell and Joanna Wasik of Washington Lawyers’ Committee for Civil Rights and Urban Affairs. The press release announcing the workers’ settlement can be found here.