Illinois Attorney General Kwame Raoul has filed a lawsuit against Chicago-based PMJ Enterprises Inc. and its owner and president, accusing the construction company of repeatedly violating state labor laws by underpaying workers and misclassifying them as independent contractors instead of employees.
“In Illinois, we will not allow employers to skirt the law by misclassifying their employees as independent contractors,” Raoul said in a statement. “My office will continue to fight to ensure workers are protected from misclassification and violations of their right to be paid what they are owed under the law.”
The Attorney General’s Workplace Rights Bureau investigation found that PMJ allegedly paid some workers through money orders and through third-party or “pass-through” companies, which Raoul’s office says was designed to conceal the true employer-employee relationship. Investigators also maintain that PMJ underreported wages to the Illinois Department of Employment Security (IDES), reducing its required contributions to unemployment insurance.
According to the lawsuit, PMJ violated the Illinois Minimum Wage Law by failing to pay workers 1½ times their standard hourly rate for overtime hours worked beyond 40 per week. The complaint also alleges violations of the Employee Classification Act, which sets strict criteria for when construction laborers can legally be treated as independent contractors.
The Attorney General is seeking recovery of all unpaid wages owed to employees, along with statutory damages, back interest and civil penalties. The suit also asks the court to issue an injunction against PMJ and its owner, preventing future labor law violations and requiring compliance monitoring.
Raoul emphasized that wage theft remains a major concern across the state, particularly among immigrant and vulnerable workers who may fear reporting exploitation. Over the past year alone, his office reports recovering more than $15 million in stolen wages and benefits for Illinois workers.
Labor advocates say the case highlights a growing effort to hold employers in the construction sector accountable for payroll fraud practices that give violators a competitive edge over law-abiding contractors. They argue that misclassification not only harms workers but also deprives public agencies of tax revenue and weakens fair-market competition.
Workers who believe they may have been affected by wage or hour violations are encouraged to contact the Attorney General’s Workplace Rights Hotline at 1-844-740-5076 or file a complaint online through the Attorney General’s website.
Originally reported by Special to Chicago Construction News in Chicago Construction News.
