Two construction subcontractors have agreed to pay $1.28 million in back wages and damages to workers in what officials claim is the largest wage theft recovery ever secured by the Minnesota Department of Labor and Industry.
The settlement brings an end to the yearslong investigation into wage theft purported over the course of multiple construction projects, including the high-profile Viking Lakes development in Eagan, which is part of the Minnesota Vikings’ headquarters.
“This is a big win for workers across the construction industry,” said Commissioner Nicole Blissenback during a news conference announcing the settlement.
Wage Theft Win
Under the terms of the settlement, Advantage Construction agreed to pay $1.24 million in back wages that occurred over an 18-month period, while Property Maintenance & Construction will pay back $1,500 in damages to each of the 26 affected workers in the lawsuit. Both companies have also been assessed a $26,000 civil penalty, but those may be waived if the companies have no further violations over the next three years.
Although the wage theft allegations first surfaced in 2022, the case actually dates all the way back to 2019. Not only did it take years to review 19 specific construction projects for wage theft violations, but Minnesota Attorney General Keith Ellison also took legal action during the investigation against one subcontractor, alleging obstruction. He claimed the subcontractor failed to provide necessary documents and instructed workers to mislead investigators.
In the settlement, Advantage Construction denied any wrongdoing and instead attributed the issue to “unauthorized and previously unknown actions” by a former project manager. The company also claimed that they settled in order to avoid continued litigation.
Labor advocates and industry leaders praised the victory for the workers, claiming that wage theft is a major problem in the construction industry. Not only are subcontractors hurt when they aren’t paid their fair wages, but the process disrupts the fair bidding process for jobs. Companies and other workers miss out on projects because other companies bid lower for jobs, knowing they can afford to do this because they won’t pay fair wages to their employees. Estimates suggest that nearly one in four construction workers in Minnesota have been affected by wage theft at some point in their careers.
If you think it’s even remotely possible that you aren’t being paid fair wages for work that you performed, including for overtime or extra shifts, take a meeting with a workers’ compensation firm like Hey Workers. It’s possible that it was a simple oversight by payroll and accounting, but it’s also possible that something more nefarious is afoot. You already put your body and your life on the line in the construction industry, you deserve to be paid fairly for the work you perform. And if an employer or a contractor is threatening legal action or termination if you speak out against unfair labor practices, you need to reach out to a professional. We can ensure your rights are upheld and you are protected by the system.
For more information about wage theft laws in Minnesota, or if you have questions about a potential wage theft case of your own, pick up the phone and contact the team at Hey Workers today at (844) 439-9675.
