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Dive brief:
- The Minnesota Department of Labor and Industry recovered $1.28 million in back wages and liquidated damages compensation for construction workers after an investigation into several companies, according to an April 27 press release.
- The case found that Property Maintenance and Construction and Advantage Construction denied proper payment to workers.
- The money ranks as the largest recovery from a Minnesota DLI wage and hour investigation, according to the release.
Diving knowledge:
The Minnesota DLI said its investigation found workers were not being paid the required wages for hours worked, leading to violations of state wage and hour laws and resulting in damages. The agency’s actions resulted in consent orders requiring payment to affected workers and reinforcing that contractors and subcontractors are responsible for paying adequate wages.
“These cases are complex, but we are committed to recovering every penny owed to these affected workers,” DLI Commissioner Nicole Blissenbach said in the statement. “As a result of these consent orders, 26 workers will receive back wages that are years behind schedule – most of the workers were shorted tens of thousands of dollars. These efforts not only support workers who are victims of wage theft, but help ensure a level playing field for law-abiding employers in the construction industry.”
Chris Amiot, owner and CEO of East Bethel, Minn.-based Advantage Construction, disputed the allegations, saying he “never employed any of the workers in question,” who were hired by a subcontractor. The company “strongly disputes and denies the violations of law alleged by the Department” and agreed to a consent order to settle the matter and avoid protracted litigation.
The company has since cut ties with the subcontractor and is strengthening its vetting processes, the company told Construction Dive.
Property Maintenance and Construction, a Brooklyn Park, Minn.-based company run by Leopoldo Pimentel Jr., could not be reached for comment prior to publication.
The enforcement action reflects broader trends across the industry. In a recent case, a California contractor was ordered to pay $468,505 in back wages and damages after a federal investigation found minimum wage and overtime violations.
Labor experts point out that it is often linked to wage theft the way construction work is structured. Projects often involve layers of subcontractors, where cost pressures and thin margins can incentivize pay cuts. This system can also make enforcement difficult, as workers may not be sure who their real employer is and companies further up the chain may not directly handle payroll.
