Construction firms to pay $1.28M to workers in largest wage recovery by Minnesota labor agency

Two construction subcontractors agreed to pay $1.28 million in back wages and damages to 26 workers to settle the largest wage theft case ever brought by the Minnesota Department of Labor of Industry.

The settlements come years after state labor investigators began looking into the allegations of wage theft — first reported by the Reformer in 2022 — at the sprawling mixed-use development called Viking Lakes. The billionaire Wilf family, owners of the Minnesota Vikings, built the development around the team’s Eagan headquarters.

It’s a rare victory for state regulators and workers over the pervasive problems of wage theft and misclassification in the construction industry, which is estimated to affect nearly 1 in 4 workers in Minnesota while robbing state coffers of millions in unpaid taxes each year.

“This is a big win for workers across the construction industry,” said Minnesota Department of Labor and Industry Commissioner Nicole Blissenbach at a news conference on Monday.

Advantage Construction, owned by Chris Amiot, will pay workers $1.24 million in back wages over the next 18 months, and Property Maintenance & Construction, owned by Leo Pimentel, will pay $1,500 in damages to each of the 26 workers. Civil penalties of $26,000 for each company will be waived after three years if they’re not found to have committed more violations.

Emails to the companies seeking comment were not immediately returned.

Although workers will be made whole, the case’s success is blunted by time: The violations date back to 2019, and years of inflation have eroded the real value of the lost wages. The state also waived virtually all damages after initially seeking $1.2 million in damages in addition to $1.2 million in back wages in its lawsuit filed in 2023.

Blissenbach said the delay is driven by the complexity of wage theft cases and resistance from contractors. Attorney General Keith Ellison sued Pimentel for obstructing the investigation, alleging he refused to turn over documents and instructed workers to lie to investigators.

After the investigation began at Viking Lakes, it expanded to include wage and hour violations by the two subcontractors at 18 other apartment projects that were built by some of the state’s largest developers, including Roers Companies, Doran and Dominium.

In response to a request for comment, Amiot denied committing any violations. He said the workers were not directly employed by his company and his company was only considered a joint employer because of “unauthorized and previously unknown actions” by one of its project managers, with whom Advantage has since terminated their relationship.

He said the company chose to settle to “avoid the continued burden, cost, and distractions of further litigation.”

“Advantage will continue to take steps to vet its subcontractors and work with subcontractors who are fully and timely paying their workers so that Advantage can focus on delivering excellent service and work for its customers,” he said.

Emails to Pimentel and his attorney were not immediately returned.

The workers came forward with assistance from the carpenters’ union, the Northern Midwest Regional Council of Carpenters, which has a stake in preventing wages from being eroded by bad actors in the industry.

“We are marketing apprenticeships and careers in the trades as debt-free paths to the middle class. We can’t afford to let the greed of some developers and some contractors turn these skilled jobs into an exploited underground economy,” said Burt Johnson, an attorney for the union.

Johnson said the workers persisted in their claims despite facing threats and retaliation.

Wage theft in construction is pervasive in no small part because many non-unionized workers are undocumented and may be fearful to take legal action to recover lost wages.

The Biden administration expanded deportation protections for workers who were victims, or witnesses, of labor violations in an effort to crack down on exploitative employers who put law-abiding contractors at a disadvantage.

As the Trump administration pushes for mass deportation, workers without legal status are even less likely to report abuses even if they have work permits and pending visa applications, for fear of getting caught in the dragnet.

Blissenbach said Operation Metro Surge made it harder for labor regulators to maintain connections with exploited workers and fears it will have a chilling effect.

“Our ability to successfully enforce Minnesota laws relies on workers who come forward to share their experiences and assert their rights,” she said.

None of the developers were liable for the wage violations by their subcontractors. Under a new law passed in 2023 — and not applicable in this case — general contractors may be ordered to pay subcontracted workers their back wages and then could take legal action to recover it from the subcontractor.

The law aims to address the byzantine subcontracting arrangements in construction that make enforcement difficult and shield large developers from being accountable for labor abuses they profit from.

MV Ventures, the Vikings’ development arm, denied being aware of wage violations, saying in a statement in 2023 that the state’s findings were “disturbing” and “indicate a deliberate effort by these subcontractors to deceive both their employees and the multiple developers who led these Twin Cities projects.”

But labor advocates and unionized contractors say developers have good reason to suspect wage theft will occur when accepting unrealistically low bids from subcontractors with a history of violations.

Crossroads Construction CEO Katie Kunshier said disreputable contractors can shave 40% or more off their bids by shorting workers, making it impossible for unionized companies like hers to compete on price.

“That’s not competition. That’s employment fraud,” she said at the news conference. Her company lost bids to Advantage Construction on more than one of the 19 projects where violations occurred.

“It doesn’t only hurt workers. Employment fraud hurts honest businesses and even Minnesota taxpayers,” she said. “These enforcement actions support a level playing field.”

The 19 projects where state regulators say wage theft happened:

• Lunds & Byerlys Penn Ave Apartments; 6228 Penn Ave. S., Richfield, MN 55423
• Beyond Apartments; 236 Settlers Ridge Parkway, Woodbury, MN 55129
• Viking Lakes Apartment Buildings; 700 Vikings Parkway, Eagan, MN 55121
• Ballantrae Apartments; 3890 Ballantrae Rd., Eagan, MN 55122
• Liffey on Snelling; 308 Snelling Ave. N., St. Paul, MN 55104
• Havenwood of Maple Grove; 18695 73rd Ave N, Maple Grove, MN 55311
• Rosemary Apartments; 4628 Rosemary Way, Hugo, MN 55038
• Roseville Terrace Garages; 1760 N. Fernwood St., Roseville, MN 55113
• The Reserves of Arbor Lakes, Maple Grove, MN 55369
• Hampton Inn; 11825 Technology Dr., Eden Prairie, MN 55344
• 108 Place; 4050 W. 108th St., Bloomington, MN 55437
• Harvestview Place; 5320 56th St. NW., Rochester, MN 55901
• The Legends of Blaine; 10826 Austin St. NE., Blaine, MN 55449
• The Winslow West St. Paul; 1631 Marthaler Ln., West St. Paul, MN 55118
• Annandale Care Center; 500 Park St. E,, Annandale, MN 55302
• Okalee of Medina; 4350 Chippewa Court, Medina, MN 55357
• Marshall Street Apartments; 1303 Marshall St., Minneapolis, MN 55414
• The Crossing at Big Lake Station; 115 Henry Rd., Big Lake, MN 55309
• Temperance Ridge Senior Living; 410 Fox Lake Ave., Sherburn, MN 56171