MINNEAPOLIS — The Minnesota Department of Labor and Industry has recovered $1.28 million in back wages and liquidated damages for construction workers following a major wage theft investigation involving multiple firms, according to an April 27 state announcement.
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State officials said the investigation found that workers connected to Property Maintenance and Construction and Advantage Construction were denied proper compensation for hours worked, resulting in violations of Minnesota wage and hour laws.
The recovery represents the largest wage and hour enforcement action in the history of the Minnesota Department of Labor and Industry, the agency said.
“These cases are complex, but we were committed to recovering every dime owed to these impacted workers,” said Nicole Blissenbach, commissioner of the Minnesota Department of Labor and Industry. “As a result of these consent orders, 26 workers will receive back wages that are years overdue — most workers were shorted tens of thousands of dollars. These efforts not only support workers who are victims of wage theft, they help to ensure a level playing field for law-abiding employers in the construction industry.”
The agency said the violations stemmed from failures to pay workers required wages for hours worked. State officials added that the consent orders issued in the case reinforce that contractors and subcontractors remain responsible for ensuring workers are properly compensated.
Advantage Construction, based in East Bethel, Minnesota, disputed the allegations outlined by the state.
Chris Amiot, owner and CEO of Advantage Construction, said the company “never employed any of the workers at issue,” claiming the laborers were hired through a subcontractor rather than directly by the company.
The firm “adamantly disputes and denies the violations of law alleged by the Department” but agreed to a consent order to avoid prolonged litigation, according to statements provided to Construction Dive.
The company also said it has severed ties with the subcontractor involved and is strengthening its subcontractor vetting and oversight processes moving forward.
Property Maintenance and Construction, a Brooklyn Park, Minnesota-based company operated by Leopoldo Pimentel Jr., could not be reached for comment before publication.
Labor experts say wage theft investigations have become increasingly common in the construction sector due to the industry’s layered subcontracting structure and intense cost pressures.
Construction projects often involve multiple tiers of subcontractors, which can create confusion regarding payroll responsibility and worker classification. Industry analysts note that these arrangements sometimes allow unlawful labor practices to go unnoticed for extended periods.
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The Minnesota case mirrors other recent enforcement actions nationwide. In California, for example, a contractor was recently ordered to pay more than $468,000 in back wages and damages following a federal investigation into overtime and minimum wage violations.
Labor advocates argue that stronger enforcement actions are necessary to protect workers and maintain fair competition within the construction industry. State officials also said aggressive enforcement helps prevent companies that violate labor laws from gaining unfair pricing advantages over compliant contractors.
The record-setting recovery in Minnesota comes as labor agencies across the country increase scrutiny of wage practices, worker misclassification and subcontractor accountability in the construction sector.
Industry observers expect regulators to continue focusing on wage compliance as labor shortages, rising project costs and growing subcontractor networks place additional pressure on contractors nationwide.
Originally reported by Keith Loria in Construction Dive.
