Two construction firms will pay more than $302,000 after a D.C. investigation found more than 100 workers were improperly classified as independent contractors.

The District of Columbia attorney general announced settlements with two drywall contractors that will require them to pay more than $302,000 to workers and the District over allegations of worker misclassification.

Attorney General Brian L. Schwalb said DR Construction and Consulting Inc. and Pedro & Pablo’s Construction Company Inc. improperly classified more than 100 construction workers as independent contractors instead of employees, depriving them of wages and benefits required under D.C. law.

“Today, we’re putting money back in the pockets of more than one hundred construction workers who were illegally deprived of wages and benefits they were legally entitled to receive,” Schwalb said.

According to the Office of the Attorney General, Pedro & Pablo, a Virginia-based drywall contractor, misclassified workers on District projects from 2021 to the present. DRCC, a Maryland-based contractor, allegedly used subcontractors, including Pedro & Pablo, that misclassified workers on D.C. job sites.

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Under separate settlement agreements, Pedro & Pablo will pay $200,000, including $135,750 in restitution to workers and $57,500 in penalties. DRCC will pay $102,739, including $56,250 in worker restitution and $46,489 in penalties.

The companies also agreed to change their business practices. Pedro & Pablo will reclassify its workforce as employees and submit to monitoring through 2027. DRCC will require certified payroll reports from subcontractors, conduct audits and stop working with certain subcontractors unless they demonstrate compliance with worker-classification laws.

The attorney general’s office said misclassification can deny workers benefits such as paid sick leave and workers’ compensation coverage while reducing tax and insurance contributions owed to the District.