The Minnesota Department of Labor and Industry has secured $1.28 million in back wages and liquidated damages for construction workers following a major wage and hour investigation involving multiple contractors, according to state officials.
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The recovery marks the largest wage and hour enforcement action in the agency’s history and highlights growing scrutiny over wage compliance practices in the construction industry, where layered subcontracting arrangements can complicate payroll accountability.
State investigators found that Property Maintenance and Construction and Advantage Construction failed to properly compensate workers for hours worked, violating Minnesota wage and hour laws.
The investigation resulted in consent orders requiring payment to affected employees. According to the agency, 26 workers are expected to receive compensation that had been overdue for years.
Nicole Blissenbach, commissioner of the Minnesota Department of Labor and Industry, said in a statement that many workers were denied substantial earnings.
“Twenty-six workers will receive back wages that are years overdue, with most workers shorted tens of thousands of dollars,” Blissenbach said.
The enforcement action comes amid broader national concerns about wage theft and labor compliance across the construction sector, particularly as contractors face labor shortages, rising project costs and increasing use of subcontracted labor.
The investigation centered on allegations that workers were not paid legally required wages for time worked on construction projects. State officials emphasized that both contractors and subcontractors remain responsible for ensuring lawful wage payments throughout a project’s labor chain.
Chris Amiot, owner and CEO of Advantage Construction in East Bethel, Minnesota, disputed portions of the findings. Amiot stated that the company did not directly employ the workers identified in the investigation and said a subcontractor hired them.
According to the report, Advantage Construction agreed to the consent order to avoid prolonged legal proceedings.
The company also said it has terminated its relationship with the subcontractor involved and is strengthening internal vetting procedures for future subcontracting partnerships.
Representatives for Property Maintenance and Construction, based in Brooklyn Park, Minnesota, were unavailable for comment.
Industry analysts note that construction projects often involve several tiers of subcontractors, which can create confusion about employment relationships and payroll responsibility. Workers may not always know which entity officially employs them, while general contractors may not directly oversee payroll operations.
Labor enforcement agencies across the United States have increased scrutiny of wage theft cases in recent years as construction activity continues to expand nationwide.
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Experts say wage violations frequently stem from tight project margins, aggressive bidding environments and fragmented subcontracting structures that can incentivize underpayment or payroll irregularities.
State labor officials said the Minnesota case underscores the importance of compliance oversight as construction employers navigate workforce pressures and project delivery demands.
The enforcement action also reflects a broader push among regulators to hold higher-tier contractors accountable for wage compliance, even when labor is supplied through subcontractors.
As public and private construction spending remains elevated across the country, labor advocates and regulators are expected to continue focusing on payroll transparency, worker classification and wage enforcement throughout the construction supply chain.
Originally reported by Index Box.
