The state of Minnesota revealed April 27 it has reached a $1.28 million settlement with contractors for shorting workers’ pay, the largest recovery in wage and hour violations in its history.
The investigation by the Minnesota Department of Labor and Industry found 26 workers were denied overtime and other pay for work on 19 construction projects in the Twin Cities metro area. The projects included the 200-plus-acre, upscale, mixed-use Viking Lakes in Eagan. That project is by the owners of the Minnesota Vikings near the NFL team’s stadium, headquarters and training center.
The violations occurred from March 4, 2019, through June 5, 2022, according to DLI, with most of the workers “shorted tens of thousands of dollars.”
The investigation focused on Advantage Construction Inc., Property Maintenance & Construction LLC, and Property Maintenance and Construction Inc.
Advantage was a subcontractor on the projects and had hired PMC.
According to DLI consent orders the companies signed:
- Advantage has agreed to pay $1,241,938.95 in back wages.
- PMC has agreed to pay $1,500 in liquidated damages to each affected worker for a total of $39,000.
Advantage denies any wrongdoing and said it is paying the amount “for the sole purpose of bringing this matter to an efficient resolution and to avoid the cost of further litigation,” according to a consent order between DLI and the contractor.
“Advantage denies that it committed any such violations, denies any liability or wrongdoing, denies employing any of the 26 workers at any time as a joint employer or otherwise, and denies having any knowledge of or involvement with any aspects of the alleged employment relationship between any of the 26 workers and PMC,” the consent order reads. “Advantage asserts it relied on its subcontractor to comply with all applicable laws, including but not limited to laws relating to payment to its subcontractor’s employees and independent contractors.”
PMC also denies any wrongdoing and says it agrees to the consent order “for the sole purpose of bringing this matter to an efficient resolution.”
DLI says the case brings to a close a complex investigation with the purpose of “recovering every dime owed to these impacted workers.”
“As a result of these consent orders, 26 workers will receive back wages that are years overdue — most workers were shorted tens of thousands of dollars,” said DLI Commissioner Nicole Blissenbach. “These efforts not only support workers who are victims of wage theft, they help to ensure a level playing field for law-abiding employers in the construction industry.”
The state also has a new law designed to protect workers from wage theft, which took effect after these incidents occurred.
The Construction Worker Wage Protection Act, enacted August 1, 2023, holds contractors liable for unpaid wages and benefits owed to construction workers by their subcontractors.
