In a city where every penny counts, the big guys just took a hit for the little guy. Attorney General Brian L. Schwalb has landed a decisive blow against wage theft, securing a $3 million settlement from Arise Virtual Solutions, Inc., a firm that allegedly had a habit of shortchanging its workers by misclassifying them as independent contractors. After a legal face-off, Arise has agreed to compensate over 250 D.C. customer service workers and cough up nearly $940,000 in civil penalties to the District, as reported by the Office of the Attorney General (OAG).
Arise, a big name in the gig economy that services heavy hitters like Comcast has been called out for unlawfully skimping on minimum wages, overtime, and paid sick leave. According to the OAG, Arise preferred to label workers as contractors, making it easier to sidestep labor laws and keep the wage pot thin. In doing so, going after vulnerable demographics, primarily women of color were targeted during Arise's recruiting maneuvers, who found themselves being paid below the District's minimum wage.
The crackdown on Arise is part of a larger hustle by the OAG to level the playing field in D.C. and give workers a fair shake. Attorney General Schwalb didn't mince words when he stated, "This settlement puts more than $2 million into the pockets of workers Arise took advantage of in a misclassification scheme – an illegal practice that is, unfortunately, all too common in the District." He further added that his office "will continue to fight to ensure that workers receive the wages and benefits they deserve."
Arise didn't just fail to pay fair pay, they also allegedly made workers foot the bill for all sorts of things - from mandatory training to the internet connection needed for their work-from-home gig. In its relentless pursuit of profit, expenses were conveniently shoved onto its agents. These shady practices are now ending, at least in D.C., as Arise will be packing up its operations and leaving town.
The OAG is no stranger to such fights, having secured over $25 million from unscrupulous employers since it got the green light to enforce wage theft laws.
