Manganaro Midatlantic LLC has agreed to a $2.25 million class action settlement involving people who did construction-related work for the company through labor brokers or subcontractors between May 15, 2021, and Sept. 23, 2025. The dispute centers on a common construction-industry arrangement—using subcontractor agreements and third-party labor providers—that can blur who the “employer” is for wage-and-hour purposes, especially when workers perform core jobsite labor under a contractor’s direction. Under overtime rules, the key questions are often whether workers were treated as independent contractors rather than employees, and whether they were paid time-and-a-half for hours worked beyond 40 in a workweek. The lawsuit was filed because workers alleged they were misclassified as independent contractors and, as a result, were denied overtime pay they were legally owed; the company denies wrongdoing but is settling to resolve the claims. Its significance is both practical and procedural: eligible workers can receive pro rata payments tied to their estimated unpaid overtime plus a flat $25 amount tied to alleged misclassification, and most people won’t need to submit a claim form—payments are expected to be mailed if contact and Social Security information are current—while class members who disagree with the deal can opt out by Dec. 15, 2025, ahead of a Feb. 5, 2026 final approval hearing. More broadly, this case reflects a wave of wage-and-hour litigation in construction and other labor-intensive sectors where companies rely on subcontracting, staffing, and “1099” models to control costs and staffing flexibility. Those models face ongoing scrutiny under federal and state rules governing overtime (such as the Fair Labor Standards Act) and worker classification tests that examine factors like control, economic dependence, and whether the work is integral to the business—issues that have also driven similar class actions against general contractors, subcontractors, and labor brokers when workers allege they were labeled independent contractors on paper but functioned like employees on the jobsite.