Workers were seen at the continued construction of the new General Assembly Building on the grounds of Capitol Square on March 21.
Work continues at the new General Assembly Building on the grounds of Capitol Square in Richmond, VA Monday, March 21, 2022.
Almost two dozen workers employed by drywall subcontractors building a new home for the General Assembly and other big construction projects in Virginia have received payouts to compensate for allegedly unpaid overtime under settlement of a federal lawsuit filed against three Richmond-area companies.
Under the settlement — approved by U.S. District Judge Henry Hudson on Jan. 26 and first reported by WRIC-Channel 8 this week — 22 workers received a total of $54,326 for their claims of wage theft by two drywall subcontractors and the company that hired them for the high-profile construction project next to Capitol Square, as well as other major public and private construction projects in Virginia.
The payments ranged from $574 to $21,628 for 19 employees of two drywall subcontractors, and $500 each for three employees of one other subcontractor not named in the suit for allegedly similar labor practices.
The settlement also requires the companies to pay $86,000 in attorneys fees for the lawyers representing workers in the case, which was filed in December 2020.
“It’s a fair settlement for our clients,” said Matthew Kaplan, a Fairfax County attorney who specializes in violations of the Fair Labor Standards Act, which sets federal requirements for overtime wages.
A wide-ranging push to crack down on worker misclassification on public construction project…
The lawsuit alleged that Capital Interior Contractors — and two of its drywall subcontractors, GTO Drywall Inc. and RDIC Inc. — improperly misclassified employees as independent contractors to avoid paying their time-and-a-half for overtime hours, as well as other benefits.
In the settlement agreement presented to Hudson in late December, the companies denied the allegations and any liability for “alleged failure to pay overtime compensation,” or that the workers were jointly employed by Capital Interior and the subcontractors it hired for the jobs.
“Specifically, there is a bona fide dispute as to whether Defendants were employers or joint employers and whether the workers were improperly classified as contractors who should have been paid overtime compensation,” lawyers for the workers said in a memorandum of support for the settlement.
A state investigation found a year ago that dozens of workers had been improperly classified as independent contractors and not fully compensated for overtime hours on the new General Assembly Building at the corner of East Broad and North Ninth streets in downtown Richmond.
The project is part of a $300 million overhaul of prominent state properties next to Capitol Square. The new General Assembly Building is expected to be completed this year and reopen for the legislative session scheduled to begin in January.
It was among 34 high-profile construction projects, private and public, that the lawsuit alleged had used subcontractors who used labor practices that violated federal wage and hour laws.
Last fall, then-Attorney General Mark Herring brought felony embezzlement charges against the two drywall subcontractors, alleging that through worker misclassification the companies had deprived workers of full wages and the state taxes for benefits such as unemployment insurance and workers’ compensation.
About a year after unions raised public concerns, a grand jury indicted two General Assembly…
RDIC, or Richmond Drywall Installers Constructors Inc., pleaded guilty in December and agreed to pay $21,000 in fines and restitution for misclassifying its employees as independent contractors.
It was the first conviction won by a new workers protection unit in the attorney general’s office, which had investigated the charges with the Office of the State Inspector General.
The guilty plea came as a surprise to Capital Interior Contractors Inc., which had hired the drywall subcontractors.
“Capital does not condone such practices,” Nate Story, the company’s attorney, said in a statement in December. “Capital continues to investigate this issue and is committed to legal compliance and fair wage practices.”
GTO Drywall pleaded guilty to five felony counts of embezzlement and agreed to pay a $2,500 fine for each count and $8,500 in restitution, according to a spokeswoman for Attorney General Jason Miyares, a Republican who took office in January.
Miyares’ director of communications, Victoria LaCivita, said he would keep the workers protection unit, using attorneys from across divisions of his office.
“The Attorney General believes in calling balls and strikes and enforcing the law as it applies to wage theft,” LaCivita said.
Two workers — Gilberto Rosales and Hector Jose Polanco-Alvarez — filed the civil lawsuit in December, 2020. Dozens of other workers subsequently joined the action.
Under the settlement, GTO paid Rosales $1,715 and RDIC paid $4,301 to Jennifer Munoz, mother of two children with Polanco-Alvarez, who died last fall.
The agreement outlined payments for a primary group of workers for GTO and RDIC, as well as a secondary group of employees at another subcontractor hired by Capital Interior. Payments to the primary group represented estimates of unpaid overtime, doubled, with an additional $400 each, with additional awards for Rosales and Munoz.
For the primary group, 19 of 22 plaintiffs agreed to participate in the settlement. In the secondary group, only three of 11 workers agreed to participate and one other worker could not be contacted, according to the court documents.
Capital Interior paid $500 each to those three workers, who cannot take further legal action against the company, but could make further claims against the subcontractor that hired them.
A state investigation has found that dozens of workers have been misclassified as independen…
Kaplan — one of the lawyers for the workers — said the lawsuit addressed what he called “a broad problem in the construction industry in Virginia.”
“There is a problem of people using subcontractors who don’t follow wage and hour rules,” he said.
As a result, Kaplan said, companies that do follow the rules “are at a significant disadvantage” in competing for construction contracts.
Labor unions representing workers for those companies have pushed hard to focus attention on what they consider unfair labor practices in Virginia.
“It was great to see the workers get the payments they deserve,” said Frank Mahoney, spokesman for the Eastern Atlantic States Regional Council of Carpenters.
Construction on the new General Assembly Building on Capitol Square at North Ninth and East Broad streets in Richmond is scheduled to be completed next year.
The General Assembly Building under construction is see from the VCU Children's Hospital of Richmond building that is also under construction Tuesday, May 18, 2021.
The state has projects underway: Old City Hall (left), the new Virginia General Assembly Building (center) and a parking deck (right). The state Capitol is seen behind Old City Hall.
Old City Hall, left, the new Virginia General Assembly Building, center and the new legislative parking deck, right, are seen in this panoramic photo of East Broad Street in Richmond, on Sept. 17. The Virginia state Capitol is seen behind Old City Hall.
Artist rendering of the parking deck at southwest corner of Ninth and Broad streets (right side), across Ninth Street from the planned General Assembly Building.
Rendering of the planned General Assembly Building from the view of 10th Street.
A rendering of a committee room inside the planned General Assembly Building.
Rendering of the cafe area of the planned General Assembly Building.
A rendering shows the entrance lobby of the planned General Assembly Building, which is expected to be completed by fall 2022.
Rendering of the first floor commons area in the General Assembly Building.
Workmen continue constrution of the new General Assembly Building at Capitol Square in Richmond, VA Wednesday, June 2, 2021. The traffic light and sign are at the nearby intersection of 9th and Grace Streets.
The General Assembly Building under construction is seen from the VCU Children's Hospital of Richmond building that is also under construction Tuesday, May 18, 2021.
The General Assembly Building under construction is see from the VCU Children's Hospital of Richmond building that is also under construction Tuesday, May 18, 2021.
Old City Hall is under construction Monday, May 17, 2021. The new General Assembly building being constructed rises behind it.
The ground is being excavated on Wednesday, April 7, 2021 to make way for the new General Assembly Building parking deck.
The ground is being excavated on Wednesday, April 7, 2021, to make way for the new General Assembly Building parking deck. The new GA Building rises behind it on left.
The ground is being excavated on Friday, April 9, 2021 to make way for the new General Assembly Building parking deck. The new GA Building rises behind it on left.
The new General Assembly Building under construction at 9th and Broad Streets in Richmond, Va Friday,, March 5, 2021.
The new General Assembly Building under construction at 9th and Broad Streets in Richmond, Va Friday,, March 5, 2021.
The new General Assembly Building under construction at 9th and Broad Streets in Richmond, Va Friday,, March 5, 2021.
Workmem on scaffolding at the new General Assembly Building under construction at 9th and Broad Streets in Richmond, Va Friday,, March 5, 2021.
Workmem outside the new General Assembly Building under construction at 9th and Broad Streets in Richmond, Va Friday,, March 5, 2021.
The elevator shaft of the General Assembly Building rises above the Capitol Wed., Jan. 6, 2021.
The General Assembly building is under construction Saturday, June 6, 2020.
The statue of Suffragist Adele Clark at the Virginia Women's Memorial inside Capitol Square in Richmond, VA appears to be glancing at the new General Assembly Building , right, under construction Tuesday, Nov. 17, 2020.
In August, scaffolding surrounded Old City Hall during renovation work as construction was underway on the new General Assembly Building (center left) downtown.
A worker on the General Assembly Building stops to watch the protest against Northam's new COVID restrictions. The protesters rallied on the corner of East Grace and North Ninth Streets across from Capitol Square Thursday, November 19, 2020.
Construction work continues at the General Assembly Building Wednesday, November 18, 2020.
Construction work continues at the General Assembly Building. Union officials have claimed that some of the project’s workers are being classified as independent contractors, which can affect taxes and overtime pay.
The General Assembly Building in downtown Richmond will be 14 stories.
A council of carpenters claims that about 60 workers on the General Assembly Building have been misclassified.
The 307-foot-tall crane that will be used to help construct the new Virginia General Assembly Building at Capitol Square in Richmond, VA Monday, June 24, 2019. Photographed from the City Hall observation deck.
The 307-foot-tall crane that will be used to help construct the new Virginia General Assembly Building at Capitol Square in Richmond, VA Monday, June 24, 2019. Photographed from the City Hall observation deck.
A person looking out a window of the City Hall ovservation deck comes face-to-face with the 307-foot-tall crane that will be used to help construct the new Virginia General Assembly Building at Capitol Square in Richmond, VA Monday, June 24, 2019.
The 307-foot-tall crane that will be used to help construct the new Virginia General Assembly Building at Capitol Square in Richmond, VA Monday, June 24, 2019.
The 307-foot-tall crane that will be used to help construct the new Virginia General Assembly Building at Capitol Square in Richmond, VA Monday, June 24, 2019. Photographed from the Barbara Johns Building rooftop.
Contractors began working last week to raise a 307-foot-tall tower crane to assist with construction of the General Assembly Building. In mid-2020, the crane will be extended an added 30 feet. The building is set to be completed in 2021 and will keep its original façade from 1912.
The 105-year-old facade is all that remains of the former General Assembly Building at Ninth and East Broad streets. The historic wall, a design influenced by the 16th-century Venetian architect Andrea Palladio, spans six floors and has served as the inspiration for the replacement General Assembly Building. The new building will be 15 stories with a modern classical design.
A workman on a ladder attaches a cable to a beam of the old General Assembly Building, which is being torn down beside Capitol Square in Richmond, VA Friday, May 22, 2018. The building in the background is Richmond City Hall.
Work continues on the destruction of the former General Assembly building on Tuesday, May 8, 2018.
Workers are demolishing the General Assembly building piece by piece. This week, all that's left of the western portion of the building is the glass fascade facing Broad Street.
Demolition continues on the General Assembly Building beside the Virginia State Capitol, right, in Richmond, VA Thursday, April 26, 2018. The work of taking down and removing the building will continue into the summer and a replacement will be ready in 3-4 years.
Demolition continues on the General Assembly Building across from Richmond City Hall, left, in Richmond, VA Thursday, April 26, 2018. The work of taking down and removing the building will continue into the summer and a replacement will be ready in 3-4 years.
The shell of the General Assembly Building now undergoing demolition just outside Capitol Square in Ricmond, VA Friday, March 30, 2018. The building will be replaced with a new structure to house General Assembly members, staff and committees.
The decision to preserve the 1912 facade of the old General Assembly Building facing the Capitol added time and cost to the project. The scope of the project has been reduced to save money.
A photo (bottom part of frame) of part of the original General Assembly Building now undergoing demolition hangs on the construction fence just outside Capitol Square in Ricmond, VA Friday, March 30, 2018. The building will be replaced with a new structure to house General Assembly members, staff and committees.
A workman showers sparks as he cuts a steel beam inside the shell of the General Assembly Building now undergoing demolition just outside Capitol Square in Ricmond, VA Friday, March 30, 2018. The building will be replaced with a new structure to house General Assembly members, staff and committees.
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Workers were seen at the continued construction of the new General Assembly Building on the grounds of Capitol Square on March 21.
Work continues at the new General Assembly Building on the grounds of Capitol Square in Richmond, VA Monday, March 21, 2022.
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