D.C. Attorney General Brian L. Schwalb has locked in a $279,000 settlement with Jan-Pro Franchising International and Jan-Pro of Washington to resolve claims that the companies misclassified janitors and shorted their pay. Under the deal, roughly $54,800 will go back to dozens of janitors who worked on District cleaning contracts dating to 2019, while $224,200 will cover penalties and settlement administration costs for the city. The agreement also forces the local Jan-Pro operator to overhaul its franchise practices so workers have more control over schedules, contracts, and equipment.
As reported by WJLA, the Office of the Attorney General alleged that Jan-Pro ran a multilayer franchising setup that sold workers on entrepreneurial freedom but then buried them in startup and recurring fees, frequent inspections, and tight noncompete clauses. The result, according to the OAG, was a system that effectively controlled workers like employees while still treating them as independent contractors.
How the case began
The Office of the Attorney General first took Jan-Pro Franchising International and Nabicorp, doing business as Jan-Pro of Washington, to court in 2022, alleging violations of the District's Wage Payment and Collection Law and the Sick and Safe Leave Act, according to the Office of the Attorney General complaint. That filing accused Jan-Pro of using franchise contracts and fee structures to misclassify unit franchisees as independent contractors, shift business costs onto workers, and make unlawful deductions that could cut as much as 25% from a janitor's monthly earnings.
In a statement to WJLA, Schwalb said, "Jan-Pro of Washington promised workers the opportunity to start their own businesses, when in reality, it treated them as strictly-controlled employees without any of the benefits or protections of employment." The outlet reports that the settlement splits the $279,000 into $54,800 in restitution for "dozens" of janitors and $224,200 in penalties and settlement administration costs for the District.
What this will change for janitors
For District janitors, the agreement is supposed to make the franchise promise of independence a lot less theoretical. Janitors will have more say in contract negotiations, the ability to choose where to buy or lease their supplies and equipment, and some relief from the kinds of inspections and fees that previously chipped away at their pay. The consent terms also strip out restrictive noncompete language that had limited workers' ability to take on other cleaning jobs. The Office of the Attorney General has framed the settlement as both payback for workers and a structural fix meant to curb similar misclassification practices going forward.
How to check if you qualify
Workers who think they were underpaid can reach out to the Office of the Attorney General's Workers' Rights & Antifraud Section at (202) 724-7730 or [email protected] to see whether they qualify for restitution, according to the Office of the Attorney General. The OAG says it will monitor compliance with the settlement terms and pursue additional enforcement if companies continue to misclassify workers.
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