Labor & Employment Law Daily Wrap Up, D.C. OAG NEWS—Attorney General Schwalb secures $166K from car detailing and rental company for misclassification of workers, (Oct 10, 2025)

By WK Editorial Staff

Over $111,000 of that total will go to the harmed workers.

District of Columbia Attorney General Brian L. Schwalb recently announced that Unique On The Go Corporation, a car detailing and rental car management company, will pay over $166,000 to resolve claims that it paid 84 workers less than the minimum wage and also deprived them of overtime wages by misclassifying them as independent contractors rather than employees. The employer is a car detailing and rental car fleet management company that also contracts with car rental companies, dealerships, and other facilities to provide janitorial services, auto maintenance services, and staffing.

“We will not allow companies to illegally boost their profits, strip their workers of labor protections, and undercut their competitors by misclassifying their workforce,” said Attorney General Schwalb. “This settlement holds Unique On The Go accountable for violating DC labor laws, puts wages back in the pockets of workers who were harmed, and helps ensure that when businesses play by the rules, they are competing on a level playing field.”

Sufficient control. An investigation by the Office of the Attorney General (OAG) uncovered that Unique had classified 84 of its District workers as independent contractors, even though it exercised sufficient control over them such that they should have been classified as employees under D.C. employment laws. Because of this, the workers routinely made less than the D.C. minimum wage. They also never received overtime wages when they worked over 40 hours in a week, and they did not receive sick and safe leave under D.C.’s Accrued Sick and Safe Leave Law.

Under the settlement agreement, the employer will pay $111,008 to harmed workers, an amount that includes restitution for unpaid wages and overtime, as well as liquidated damages. It will also pay more than $55,000 to D.C. in civil penalties.

Already reclassified workers. During the investigation, Unique reclassified its D.C. workers as employees. The employer will implement and maintain policies and procedures to prevent future misclassification. It will also conduct a review of any District workers still classified as independent contractors to ensure they are not misclassified. Additionally, for one year after the settlement date, it will submit quarterly reports to OAG.

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