Baltimore’s architectural salvage store Second Chance, its founder and its subcontractors have committed wage theft against dozens of workers, a new federal lawsuit alleges.

The lawsuit, filed Monday in the U.S. District Court for the District of Maryland, claims that while Second Chance is billed as an “innovative social enterprise” that provides livable wages, in practice, it has denied workers overtime pay and other forms of compensation.

The complaint centers on allegations that workers were wrongly classified as independent contractors rather than as employees of the nonprofit. That status effectively denied them certain wages under the federal and state law.

The workers dismantle residential properties in Maryland and across other East Coast states, salvaging furniture, flooring, cabinets, windows and fixtures. Those materials are a signature offering at Second Chance’s sprawling South Baltimore campus, a popular destination for the region’s homeowners, designers and DIY-ers. Film production companies also turn to the nonprofit for props and set pieces.

Second Chance created its workforce program “to address the pressing needs of Baltimore City residents who were facing multiple challenges to employment, good wages, and progressive skills,” its website says.

Plaintiffs Manuel Portillo and Francis Bentancourth, represented by attorneys with the Baltimore-based Public Justice Center and Sally Abrahamson of Werman Salas P.C., say they were jointly employed by Second Chance, its founder and president Mark Foster and the nonprofit’s subcontractor, 300 Painting and Remodeling LLC, which is owned by Jose Rivas Mendez. The plaintiffs are seeking a class-action status.

“We vigorously disagree with these allegations and are committed to responding to them through the proper legal channels,” Foster said in an email.

“Second Chance remains steadfast in its mission to serve the community and our focus continues to be on supporting and positively impacting the individuals we serve,” he said. “We appreciate the continued trust and support of our donors, partners and beneficiaries as all the facts and circumstances become known.”

Rivas Mendez did not immediately return a request for comment.

The nonprofit controlled nearly every aspect of the plaintiffs’ work, including worksites and schedules, according to their lawsuit. The workers were required to wear vests and drive vans that were branded with Second Chance’s name, the lawsuit states. Yet Second Chance made payments to them through the subcontractor LLC, which exists primarily to provide labor for Second Chance, the lawsuit claims.

The suit goes on to say that Foster also personally hired the workers and assigned them to work for Second Chance through the LLC despite performing the same work done by the deconstruction employees who are directly on Second Chance’s payroll.

Betancourth also alleges that Second Chance and the LLC fired her in retaliation after attorneys representing the plaintiffs sent a letter expressing the workers’ interest in resolving their wage complaints outside of court. She also has filed a complaint with the National Labor Relations Board.

Baltimore City sued Second Chance over a contract dispute in 2017 and won a judgment of about $27,158, court records show. State and federal authorities have also filed several tax liens against Second Chance over the years, according to public records.

The federal lawsuit comes at a time when Second Chance is growing its footprint in South Baltimore.

Earlier this year, Second Chance sold about 6 acres of its land for $15.5 million to help springboard the organization into expansion, Foster said. The nonprofit then paid $4.5 million in the spring for two properties with a goal of opening a second store.

Foster said in an interview Friday that he hopes to replicate Second Chance’s operations in Philadelphia and other cities in the coming years.

Baltimore Banner reporter Lee O. Sanderlin contributed to this story.