Washington, D.C.

DC Attorney General Secures Over $860K in Settlements for Worker Rights Violations, Including Major Payouts by American University and VIDA Fitness

AI Assisted Icon
Published on February 28, 2025
DC Attorney General Secures Over $860K in Settlements for Worker Rights Violations, Including Major Payouts by American University and VIDA FitnessSource: Google Street View

DC's Attorney General Brian L. Schwalb has made headway in the protection of worker rights, securing settlements from several employers accused of undermining DC laws. In a recent announcement covered by OAG, the office detailed settlements totaling more than $860,000. The funds are to compensate workers and enforce reforms in workplace practices across diverse sectors, including higher education, fitness, and hospitality.

Notable among the settlements is a payout by American University, which agreed to establish a $210,000 restitution fund and pay $50,000 in penalties. Similarly, VIDA Fitness will pay $325,000 to personal trainers not compensated for certain activities and has agreed to reclassify trainers as hourly workers, as reported by OAG. The commitment of the Attorney General's office to enforce strong worker protection laws in the District is clear, but, as Schwalb said, “the laws do not enforce themselves—and we will continue fighting to ensure all DC workers receive the wages and benefits they earn and that all law-abiding businesses can compete on a level playing field."

In another instance of corporate compliance, Insomnia Cookies must pay over $59,000 after an investigation into unpaid tips and problems surrounding paid sick leave practices. This settlement requires them to recompense $25,700 directly to delivery drivers, according to OAG. Systemic failure to pay workers for training sessions at The Wydown, a DC café, resulted in an $8,470.88 restitution to former employees and a $4,517.80 penalty.

Crucially, the Attorney General's office has also targeted the use of unlawful noncompete agreements, with J.V.H. Surgical Associates, LLC, and Andean Consulting Solutions International LLC both falling under scrutiny. JVH was required to pay $5,250 to workers affected by the banned agreements, while ACSI has paid penalties and vowed to eliminate such provisions from its contracts, as the OAG statement detailed. Furthermore, 734 NW LLC, operating as SAX, will overhaul its wage practices after being found in violation of minimum wage provision and sick leave laws, resulting in $66,000 in damages to workers and $30,000 in penalties.

The OAG emphasizes the commitment of its Workers’ Rights and Antifraud Section to protect District workers against wage theft and ensure business conduct aligns with jurisdictional law. Since Schwalb's tenure began in 2023, the office has secured over $19 million for workers and the District. Workers experiencing wage and hour violations are encouraged to contact the OAG with their concerns.