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 spoke with a group of union workers, leaders and advocates in 2022 who said it was estimated the workers were underpaid more than $2 million over two years. While the workers involved were not part of a union, the director of government affairs for the carpenters union told KARE his group got involved because wage theft practices “impact the entire industry.”
“An entire business model exists that undermines people who are playing by the rules,” Adam Duininck said.
At that time, they called on MV Ventures, the Wilf family development company responsible for the construction project at Vikings Lakes, to take action over the allegations.
“I’ve been a labor lawyer in this city for 16 years and I have never seen over 25 workers come forward from one specific project,” said attorney Burt Johnson. “I have never seen that.”
In response to those allegations, MV Ventures told KARE 11, in part:
“As it relates to the now-completed Viking Lakes residential project, MV Ventures consistently communicated with union leadership and followed a fair and transparent process that included actively soliciting competitive union bids. As a result, more than 50% of the work on that project was awarded to union trades. All of the selected subcontractors were legally entitled to bid and perform work in Minnesota. They also signed agreements ensuring fair labor practices for workers at the site and requiring strict compliance with all federal and state labor, benefit, workers’ compensation and wage laws.
“Allegations of unfair labor practices on the job site were never raised during construction nor were they brought to our attention in the year since the project opened.”
KARE 11 is in the process of reaching out to the companies involved in the investigation and will share their responses to the investigation and requested damages 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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