A Lakeville man became the first person to be convicted of felony wage theft under a new state law that was passed in 2019.
Frederick Leon Newell, 59, was convicted in Hennepin County court earlier this month of one count of wage theft and one count of theft by swindle.
“This wage-theft conviction is the first of its kind in Minnesota. It is an important step forward in our efforts to protect workers,” said Hennepin County Attorney Mary Moriarty. “This type of behavior will not be tolerated. Mr. Newell was entrusted with public funds to pay his staff for their labor on a public works project. Instead, he siphoned their money for himself.”
New Wage Theft Law
According to the criminal complaint, Newell was in violation of the new law by failing to pay employees at his company at a rate of pay required by the law. Newell owned Integrated Painting Solutions in Apple Valley, and his company secured a bid to do work on the Redwell apartment complex in Minneapolis. He hired seven people to paint and clean, and all that work was subject to wage requirements under city ordinance and state and federal law.
The court found that five employees of the company were underpaid by more than $37,000 between June 8, 2020 and December 4, 2020. He was also convicted of theft by swindle after the court found that he continued to accept payments from a contractor over the course of a project despite knowing that his company was in financial distress, not paying a prevailing wage and was concealing hours worked by employees.
The court also found that Newell had committed “major economic offenses,” which could lead to increased penalties at sentencing.
The precedent has been set, and it’s clear that Minnesota courts will not let employers take advantage of their employees with unfair wage practices. Newell may be the first to be sentenced under the updated wage theft law, but he certainly will not be the last.
If you believe that you or someone you know is being underpaid or is a victim of wage theft, know that you have legal options. Talk to a lawyer, lay out a case and see what they have to say. If wage loss is evident and your lawyer believes that they can clearly showcase this to the court, they’ll fight for your rights to get you every penny you rightfully deserve.
We’ve helped victims of wage loss in the past, and we can do the same for you. Let us be your resource in a system that oftentimes unfairly puts the employee at a disadvantage. You have rights, and we want to be an advocate for you.
For more information about pursuing a wage theft lawsuit, or for assistance pursuing a more common workers’ compensation or personal injury claim, reach out to the team at Hey Workers today at (844) 439-9675.
