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Power Design is an contractor that performs electrical work in the construction industry. Between 2014 and 2017, Power Design illegally reduced labor costs by misclassifying at least 535 electrical workers to avoid paying overtime wages, paying minimum wages, and providing sick leave. The District’s Office of the Attorney General reached a settlement requiring Power Design to pay $2.75 million, marking it largest wage theft settlement to date. The District Attorney General’s investigation and Complaint regarding Power Design’s wage practices also included JVA Services, LLC and DDK Electric Inc., two labor brokers that supplied workers to Power Design’s jobsites.
Not available
Wage Theft
DC
District of Columbia
January 1, 2014
Unavailable
| First | Last | Age | Title | Employer | Injury Type |
|---|---|---|---|---|---|
| At least 535 unnamed employees | Unavailable | Unavailable | Electrical workers | Power Design Inc. | Wage theft |
| Name | Type | Title | Plea Information | Conviction Sentence |
|---|---|---|---|---|
| Power Design Inc. | Entity | Entity | Power Design agreed to a settlement with the District of Columbia to resolve the assert claims. | Power Design agreed to pay a total of $2,750,000. $879,065 of the total settlement amount went to restitution to compensate current and former workers. Power Design must pay $1,820,944 of the total settlement amount to the District as additional fines for Power Design's unlawful conduct. The final $50,000 goes toward the establishment or maintenance of an apprenticeship program. |
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Penal Crimes Charged
Not available |
Other Crimes Charged
In the District of Columbia's complaint, the District alleged Power Design: misclassified workers as independent contractors in violation of the Workplace Fraud Act, D.C. Code § 32-131.01; failed to keep payroll record in violation of the Wage Payment and Collection Law, D.C. Code § 13-1301; failed to pay minimum wage to workers in violation of the Minimum Wage Revision Act, D.C. Code § 32-1001; failed to pay overtime to workers in violation of the Minimum Wage Revision Act, D.C. Code § 32-1001; failed to provide paid sick leave in violation of the Sick and Safe Leave Act, D.C. Code § 32-531.01; failed to pay employer contributions as required by the Unemployment Compensation Act, D.C. Code § 51-101. |
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| JVA Services, LLC | Entity | Labor Broker, subcontractor | Not available | JVA Services, LLC was dissolved in January 2018, and it warrants that it does not and will not conduct business or otherwise operate in the District of Columbia. |
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Penal Crimes Charged
Not available |
Other Crimes Charged
In the District of Columbia's complaint, the District alleged JVA Services, LLC: misclassified workers as independent contractors in violation of the Workplace Fraud Act, D.C. Code § 32-131.01; failed to keep payroll record in violation of the Wage Payment and Collection Law, D.C. Code § 13-1301; failed to pay minimum wage to workers in violation of the Minimum Wage Revision Act, D.C. Code § 32-1001; failed to pay overtime to workers in violation of the Minimum Wage Revision Act, D.C. Code § 32-1001; failed to provide paid sick leave in violation of the Sick and Safe Leave Act, D.C. Code § 32-531.01; failed to pay employer contributions as required by the Unemployment Compensation Act, D.C. Code § 51-101. |
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| DDK Electric, Inc. | Entity | Labor Broker, subcontractor | Not available | DDK failed to respond to the District's Complaint, and the court entered a default judgement against DDK on February 1, 2019. |
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Penal Crimes Charged
Not available |
Other Crimes Charged
In the District of Columbia's complaint, the District alleged JVA DDK Electric Inc.: misclassified workers as independent contractors in violation of the Workplace Fraud Act, D.C. Code § 32-131.01; failed to keep payroll record in violation of the Wage Payment and Collection Law, D.C. Code § 13-1301; failed to pay minimum wage to workers in violation of the Minimum Wage Revision Act, D.C. Code § 32-1001; failed to pay overtime to workers in violation of the Minimum Wage Revision Act, D.C. Code § 32-1001; failed to provide paid sick leave in violation of the Sick and Safe Leave Act, D.C. Code § 32-531.01; failed to pay employer contributions as required by the Unemployment Compensation Act, D.C. Code § 51-101. |
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