Subcontractors ordered to pay $1.3M

Minnesota’s Department of Labor and Industry said on April 27 that two subcontractors agreed to pay $1.28 million in back wages and liquidated damages to 26 construction workers after a state investigation found wage and hour violations on 19 job sites in the Twin Cities area. The case involved Property Maintenance & Construction LLC and Property Maintenance and Construction Inc., known as PMC, and Advantage Construction Inc. The agency said the workers were denied overtime and other wages for work performed between March 4, 2019, and June 5, 2022. State officials described it as the largest recovery in a wage and hour investigation in the department’s history. ### Which companies were ordered to pay, and how much? Advantage Construction Inc. and PMC were the two companies named in the consent orders that resolved the case, according to the Minnesota Department of Labor and Industry. Advantage, which the state described as the first-tier subcontractor that hired PMC, agreed to pay back wages, while PMC agreed to pay liquidated damages. (dli.mn.gov) Engineering News-Record reported that Advantage Construction, owned by Chris Amiot, will pay workers about $1.24 million in back wages over the next 18 months. PMC, owned by Leo Pimentel, will pay $1,500 in damages to each of the 26 workers, for a total of $39,000. ### Where did the violations happen? The Minnesota Department of Labor and Industry said its investigation found violations on 19 separate construction projects across the Twin Cities metropolitan area. (dli.mn.gov) The agency said those projects included Viking Lakes in Eagan, a mixed-use development that includes the Minnesota Vikings’ headquarters and training facility. (enr.com) Minnesota Reformer reported that the investigation later expanded beyond Viking Lakes to 18 other apartment projects built by developers including Roers Companies, Doran and Dominium. The state agency’s audit period covered work from 2019 to 2022. (dli.mn.gov) ### What did investigators say workers were denied? The state labor department said 26 workers were denied overtime and other wages. Engineering News-Record reported that the alleged violations included unpaid overtime, training pay and other compensation. Commissioner Nicole Blissenbach said most of the workers had been shorted tens of thousands of dollars. (minnesotareformer.com) Blissenbach said in the department’s release that the agency was “committed to recovering every dime owed” to the workers. She said the consent orders would deliver wages that were years overdue and would help support workers who were victims of wage theft. ### How long had the case been moving through the state? (dli.mn.gov) The Department of Labor and Industry said it initiated the investigation in 2023 and filed a contested case against PMC and Advantage at the Minnesota Court of Administrative Hearings on Dec. 19, 2023. The consent orders resolved that case. (dli.mn.gov) Minnesota Attorney General Keith Ellison had already sued PMC and Leo Pimentel in October 2022, alleging they obstructed the wage theft investigation by threatening workers, discouraging cooperation and refusing to turn over records. Ellison’s office repeated those allegations in a Dec. 19, 2023, release tied to the broader enforcement action. (dli.mn.gov) ### What does the settlement require next? The consent orders require payment over time, with Advantage scheduled to pay the back wages over the next 18 months, according to ENR and Minnesota Reformer. The state also said civil penalties of $26,000 for each company will be waived after three years if no additional violations are found. (ag.state.mn.us) Minnesota’s Department of Labor and Industry said a separate law, the Construction Worker Wage Protection Act, took effect on Aug. 1, 2023, after the conduct in this case. The agency said workers and employers can find current labor-law guidance through its labor standards resources as the settlement payments move forward. (dli.mn.gov) (enr.com)