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Power Design settles wage enforcement action

January 22, 2020 - Power Design Inc., a St. Petersburg-based electrical contractor, agreed to pay $2.75 million to settle a lawsuit with the office of the attorney general for the District of Columbia. The settlement resolves a 2018 lawsuit against Power Design, alleging the company and two subcontractors misclassified more than 500 electrical workers as independent contractors instead of employees to cut labor costs. Power Design contested the allegations but agreed to a consent order to resolve the lawsuit and avoid further litigation, a news release said. Under the terms of the settlement, Power Design will be required to pay $879,056 in back wages to workers, pay $1.8 million to the District of Columbia, and pay $50,000 to support apprenticeships, job training, or workforce development programs, according to the release.

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