ABOVE: A satellite image view of construction in progress at the Kalahari Resorts and Conventions Project in Spotsylvania County, Va. Image source: Google Maps Satellite View.
CHESTERFIELD, Va. — Construction workers filed a class action lawsuit in federal court last week against Hensel Phelps and Pillar Construction, alleging that the company illegally misclassified as independent contractors as many as 80 workers, and possibly more, many of whom were allegedly not paid overtime for hours worked over 40 hours in a week.
The workers allege that they were not properly paid for work on the $900 million Kalahari Resorts and Conventions Project in Spotsylvania County, Va. Workers claim that, in order to meet the intended opening schedule in November, they were asked to work overtime and were never paid an overtime premium – in addition to experiencing weeks- and months-long delays in getting paid at all.
“Unfortunately, wage theft is the rule, not the exception, on construction projects in the region.”
– Greg Akerman, President
Baltimore-DC Metro Building Trades Council
“Unfortunately, wage theft is the rule, not the exception, on construction projects in the region.”
– Greg Akerman, President
Baltimore-DC Metro Building Trades Council
“Unfortunately, wage theft is the rule, not the exception, on construction projects in the region,” said Greg Akerman, President of the Baltimore-DC Metro Building Trades Council, the construction trades council that covers Northern Virginia.
“Hensel Phelps and Pillar Construction have been sued for wage theft before,” said Akerman, “but that didn’t stop them from getting hired to work on one of the most visible projects in the Commonwealth of Virginia.”
This wage theft lawsuit – which was filed August 13, 2026 – comes on the back of a similar suit filed in July 2026 against contractors at the Lego Factory Project in Chesterfield, Va., another large-scale project that received significant state support.
These allegations highlight the importance of attaching labor standards to projects receiving state and local funds.
These allegations highlight the importance of attaching labor standards to projects receiving state and local funds.
These allegations highlight the importance of attaching labor standards to projects receiving state and local funds. Kalahari is slated to receive almost $75 million in local subsidies, in addition to funding from the state through the Tourism Development Financing Program.
Unions are calling on Kalahari to immediately investigate its contractors at every tier to ensure workers are getting paid fairly. Unions are also renewing their calls on Virginia legislators and officials to ensure that wage theft no longer occurs on state-funded projects. All similar projects receiving Virginia funds should require prevailing wage, apprenticeship and other labor standards.
