ST PAUL, Minn. — Editor's note: The video above first aired on KARE 11 in May 2022.
An investigation into a pair of Minnesota subcontractors that began in 2019 revealed widespread illegal activity including wage theft, according to the Minnesota Department of Labor and Industry (DLI).
The DLI released a statement Tuesday, saying the state will now seek compensation for workers who allege mistreatment by Property Maintenance & Construction LLC (PMC) and Advantage Construction Inc. The state is now seeking $1.2 million in back wages and $1.2 million in liquidated damages for 25 employees who worked for both companies on 19 different construction projects - including the Viking Lakes development in Eagan.
In its statement, DLI said officials took a closer look at the companies' business dealings after a group of workers claimed they had not been paid the wages they'd been due, including overtime, and that many employees were "paid off the books in cash."
"Wage theft hurts workers and their families, and hurts responsible employers that abide by the law," said DLI Commissioner Nicole Blissenbach. "It is unacceptable for employers to cheat employees out of the full wages they work so hard to earn. Likewise, it is unfair for contractors to have an edge when bidding against law-abiding companies by stealing wages from workers."
In addition to the department's alleged wage theft findings, DLI also claims the "violations were willful," and accuses the owner of PMC of "discouraging workers from reporting violations of the law" and being part of the DLI's investigation.
As a result, PMC was ordered to pay $25,000 in civil penalties.
KARE 11 is in the process of reaching out to the companies involved in the investigation and will share their responses when they become available.
According to DLI, the state of Minnesota has some of the most stringent wage theft laws in the country, which if violated, could result in criminal penalties.
For more information about your labor rights in Minnesota, visit the department's website.
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