DC cleaning companies to pay $290K for failing to pay overtime wages, says AG Schwalb

WASHINGTON - Two related cleaning companies will pay $290,000 to resolve allegations that they failed to pay overtime wages to 323 housekeepers who worked at hotels across the District, D.C. Attorney General Brian L. Schwalb announced Tuesday.

Mardone Inc., doing business as J&B Cleaning Services, and Cuzco Facilities Services, LLC, allegedly violated wage and hour laws by not compensating employees for hours worked beyond 40 in a week.

$290K settlement

What we know:

The Office of the Attorney General (OAG) opened its investigation after receiving a tip from UNITE HERE Local 25 and said they found widespread underpayment of legally required overtime.

As part of the settlement, the companies will pay $215,000 in restitution to workers and $75,000 in penalties to the District. They have also agreed to improve their payroll practices.

What they're saying:

"This settlement puts money back where it belongs—in the pockets of hard-working hotel housekeepers who, despite working physically demanding jobs, were not paid the overtime wages they had earned," said Attorney General Schwalb in a statement Tuesday. 

"Especially as the cost of living continues to increase and working families struggle to make ends meet, I will continue to fight to ensure that all Washingtonians receive the wages and benefits they are legally entitled to, and that all businesses compete on a level playing field. I encourage anyone who has experienced wage theft, or who is aware of any violations of the District’s labor laws, to file a complaint with my office," Schwalb continued.

The probe found evidence that hundreds of hotel housekeepers, some working for both companies in the same week, were not paid overtime wages as required by law. From Jan. 1, 2021, to the present, the companies allegedly failed to pay workers the mandated rate of 1.5 times their regular pay for hours worked beyond 40 per week.

A copy of the settlement agreement is available here.