Connect with us

State News

Subcontractor Pleads Guilty to Felony Worker Misclassification

Published

on

RICHMOND (December 8, 2021) – Richmond Drywall Installers Inc., a subcontractor that has been working on the new General Assembly Building, has pleaded guilty to felony embezzlement charges based on worker misclassification brought by Attorney General Mark R. Herring’s Worker Protection Unit, following an investigation by the Office of the State Inspector General. In October, Attorney General Herring’s Worker Protection Unit brought the first worker misclassification-related charges against the subcontractor for allegedly misclassifying their employees as independent contractors to avoid paying state taxes. As part of the plea agreements, Richmond Drywall Installers Constructors Inc. will pay a total of $21,000 in fines and restitution.

“Businesses that take advantage of their workers through misclassification, wage theft, or payroll fraud are not only stealing from their hardworking employees, but they are also stealing from the Commonwealth,” said Attorney General Herring. “I am committed to rooting out worker exploitation in Virginia and protecting our workers from abuse and mistreatment by their bosses. I want to thank both my Worker Protection Unit for their hard work, as well as our partners over at the State Inspector General’s office for their help on investigating this important case.”

In Richmond City Circuit Court today, Richmond Drywall Installers Constructors Inc. pleaded guilty to five felony embezzlement counts and were ordered to pay a $2,500 fine for each of the five counts and $8,500 in restitution.

“It is the first time worker misclassification charges were brought by the OAG’s new Worker Protection Unit, and I am proud that our special agents were part of the investigation that brought this issue to the forefront,” said State Inspector General Michael C. Westfall.

These were the first worker misclassification-related charges brought by Attorney General Herring’s Worker Protection Unit since its creation earlier this year. Worker misclassification – one of the most common forms of worker exploitation – involves falsely identifying individuals as “independent contractors” when they are really employees. This allows employers to avoid paying unemployment and other taxes on workers and to avoid the costs of covering the employees with workers’ compensation and unemployment insurances, and it has been consistently shown to drive down the wages of other workers.

Front Royal, VA
63°
Sunny
6:43 am5:09 pm EST
Feels like: 63°F
Wind: 4mph S
Humidity: 79%
Pressure: 30.11"Hg
UV index: 2
ThuFriSat
77°F / 55°F
72°F / 45°F
55°F / 41°F
State News3 hours ago

Dominion-NextEra Accept Some Proposed Protections in Merger Case, Rejects Rate and Staffing Freeze

Interesting Things to Know4 hours ago

Your Will May Not Decide Who Gets Your Money: One Overlooked Form Could Change Everything

Local News13 hours ago

Blue Ridge Wildlife Center Patient of the Week: North American River Otter

Community Events13 hours ago

This Week’s Showtimes at Royal Cinemas as of November 5th

arrest logo
Arrest Logs13 hours ago

POLICE: 7 Day FRPD Arrest Report 11/2/2026

Local News13 hours ago

Front Royal Incumbents Lead Election Results as Warren County Rejects All Three Constitutional Amendments

Local News19 hours ago

Ever Wonder How Front Royal Runs? Citizens Academy Opens Applications for New Class

Obituaries20 hours ago

Mary Ann “Molly” Harrison (1939 – 2026)

Community Events22 hours ago

Master Gardeners Invite Public to November 14 Symposium on Birds, Native Plants, and Healthy Gardens

Scott's Turn1 day ago

Why Some Small Towns Become Destinations (and Others Don’t)

Historically Speaking1 day ago

Israel: Through World War I

State News1 day ago

Virginia Report Reveals Major Gaps in Access to Career and Technical Education Courses, Credentials

Interesting Things to Know1 day ago

You May Be Paying Too Much for Prescriptions: One Question at the Pharmacy Could Save You Money

Obituaries2 days ago

Fay G. Ingles (1937 – 2026)

Obituaries2 days ago

John McLane “Johnny” Cole (1943 – 2026)

Obituaries2 days ago

Joyce Ellen Meadows Powell (1947 – 2026)

Local News2 days ago

Oops All Berries Takes Spotlight in Virginia Breeders Fund “Day of Champions” Card at Shenandoah Downs 

Health2 days ago

Lung Cancer Often Has No Early Warning Signs: UVA Health Expert Urges Virginians to Get Screened

State News2 days ago

Virginia Governor Pledges Overhaul of Outdated K-12 School Funding Formula

National News2 days ago

Explosive Spending, Ugly Ads and Courtroom Battles Set Stage for Tense Midterm Elections

Interesting Things to Know2 days ago

Girl Scout Cookie Season Is Going to the Dogs in 2027

Opinion3 days ago

Rules for Me, But Not for Thee?

National News3 days ago

‘Medically Frail’ Medicaid Enrollees Won’t Have to Prove Their Inability to Work to Keep Coverage

Interesting Things to Know3 days ago

Ask Stewart: Why Is Front Royal a Tree City USA?

Interesting Things to Know3 days ago

A Fallen Tree in Washington, D.C., Becomes an Unlikely Memorial