At least 700 former employees of the now-defunct security company that used to protect the District's schools and government buildings could get money owed to them in an agreement arranged by the city government and the U.S. Department of Labor.

Hawk One closed its doors in October and left several hundred employees unpaid, blaming the city's late payments for its financial troubles that it said included $4.25 million in back taxes and penalties.

Although the city owed Hawk One $1.7 million, Attorney General Peter Nickles said he feared that the money would go to creditors instead of employees, so the city held on to the funds. Nickles and Mayor Adrian M. Fenty (D) announced Monday that a $1.7 million payment would be made to the Labor Department by Friday.

It is unclear when the employees will be paid, because the department must still determine how much each employee should receive.

Employees were pleased to learn that the process to deliver their last paychecks is underway, but they remain wary.

"We're waiting now to get some kind of acknowledgment from DOL when we're going to be compensated," said Brandon Hill, a former project manager who oversaw public school services for Hawk One. "We're going to give it until Friday. Come Friday, if we don't see something in the mail, we're going to voice our concerns."
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