Dive Brief:
- The Minnesota Department of Labor and Industry recovered $1.28 million in back wages and liquidated damages for construction workers following an investigation into multiple firms, according to an April 27 news release.
- The case found Property Maintenance and Construction and Advantage Construction denied proper pay to workers.
- The money ranks as the largest recovery in a wage and hour investigation by the Minnesota DLI, per the release.
Dive Insight:
The Minnesota DLI said its investigation found workers were not paid required wages for hours worked, triggering violations under 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 accountable for paying proper wages.
“These cases are complex, but we were committed to recovering every dime owed to these impacted workers,” Nicole Blissenbach, DLI commissioner, said in the release. “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. 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.”
Chris Amiot, owner and CEO of East Bethel, Minnesota-based Advantage Construction, disputed the allegations, saying it “never employed any of the workers at issue,” who were instead engaged by a subcontractor. The company “adamantly disputes and denies the violations of law alleged by the Department” and agreed to a consent order to resolve the matter and avoid prolonged litigation.
The company has since cut ties with the subcontractor and is strengthening its vetting processes, the firm told Construction Dive.
Property Maintenance and Construction, a Brooklyn Park, Minnesota-based firm run by Leopoldo Pimentel Jr., could not be reached for comment prior to publication.
The enforcement action mirrors 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 note wage theft is often tied to the way construction work is structured. Projects frequently involve layers of subcontractors, where cost pressures and thin margins can incentivize cutting corners on pay. That system can also make enforcement more difficult, as workers may be unsure who their actual employer is and companies higher up the chain may not directly handle payroll.
