Attorney General Schwalb Secures $290,000 for Workers and District

Attorney General Brian L. Schwalb today announced that two related cleaning companies, Mardone Inc. (doing business as J&B Cleaning Services) and Cuzco Facilities Services, LLC, will pay $290,000 to resolve allegations that they failed to pay 323 housekeepers working at hotels across the District overtime wages they had earned. The Office of the Attorney General (OAG) learned of wage and hour issues at the companies via a tip from UNITE HERE Local 25 and subsequently uncovered evidence that hundreds of employees were not paid legally required overtime wages when they worked more than 40 hours in a workweek. Now, as part of a settlement with OAG, the companies will pay $215,000 in relief to workers, pay $75,000 in penalties to the District, and change their practices.

"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. "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."

"UNITE HERE Local 25 applauds the DC Office of the Attorney General for its investigation into J&B Cleaning Services related to wage theft. The settlement should send a warning to other companies that contract with DC hotels: there are consequences if you disrespect workers and fail to pay them what they've earned," said UNITE HERE Local 25 President Linda Martin.

J&B Cleaning Services (J&B) and Cuzco Facilities Services, LLC, (Cuzco) are cleaning companies that contract with District hotels to provide housekeeping services. The two companies both provide cleaning and housekeeping services to hotels in DC under the J&B name and have common ownership and management. As a result, the companies are legally considered to be a single employer. Employees frequently work at hotels on behalf of both J&B and Cuzco in a single work week.

After a tip from UNITE HERE Local 25 about potential wage and hour violations at J&B and Cuzco, OAG opened an investigation and uncovered evidence that the companies had failed to properly compensate overtime worked by hundreds of employees who worked for both companies in the same week. OAG alleged that from January 1, 2021, through the present, hotel housekeepers were frequently deprived of legally required overtime pay of 1.5 times their regular rate of pay for hours worked over 40 in a week.

J&B and Cuzco cooperated with OAG's investigation, and now, under the terms of a settlement agreement, the companies will:

• Pay $215,000 to workers. 323 current and former hotel housekeepers will receive compensation for unpaid overtime wages. The workers will receive approximately three times the wages that were originally withheld from them.
  
• Pay $75,000 in civil penalties to DC.
  
• Change their business practices and report on compliance. J&B and Cuzco must train all managers on DC's overtime wage law and must notify all non-manager employees that they are entitled to payment at 1.5 times their regular rate of pay for each hour they work over 40 hours in a work week. They must also comply with all District wage and hour laws moving forward and provide a compliance report to OAG in one year detailing all hours worked by each employee and all overtime wages paid.

A copy of the settlement agreement is available here.

This matter was handled by Assistant Attorneys General Bryce Kelety and Charlie Sinks, Investigators Na'eelah Bakari and Shelby Miller, and Workers' Rights & Antifraud Section Chief Graham Lake.

OAG's Efforts to Protect Workers

OAG's Workers' Rights and Antifraud Section is dedicated to fighting wage theft and protecting District workers. Since becoming DC Attorney General in January 2023, Schwalb's office has secured more than $20 million for workers and the District. In total, since gaining wage theft enforcement authority, OAG has secured over $35 million by bringing investigations and lawsuits against employers who violate District law. OAG's wage theft enforcement efforts have focused on industries with high populations of vulnerable workers, such as construction, restaurants and hospitality, healthcare, and the gig economy.

How to Report Wage and Hour Violations Workers who believe that their rights have been violated, or that they have experienced wage theft or other wage and hour violations, can contact OAG by calling (202) 724-7730, or emailing workers@dc.gov or trabajadores@dc.gov.

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