Hennepin County pays $335,000 in back wages to subcontracted security guards

Hennepin County paid more than $335,000 to cover back wages and benefits for more than 100 contracted security guards after conducting an investigation into alleged wage theft by Black Knight Protection Agency and finding itself partly responsible.

Hennepin County sets minimum prevailing wages for contracted security guards, custodians and maintenance workers — much like the state and federal governments do for public infrastructure projects — and regularly updates those rates based on the labor market.

Black Knight Protection Agency initially paid the correct prevailing wage of $24.62 per hour in wages and benefits as required by the county when it was hired to provide security services at libraries and other county buildings in August 2021.

But when the county increased the hourly wage and benefits rate in May 2024, the county never told Black Knight Protection Agency owner David Junior he needed to pay his workers $28.72 per hour in wages and benefits, following years of rapid inflation.

“We weren’t aware of it, but if we would have been, we would have also got our own increase as a company,” Junior said in an interview with the Reformer. “I would never steal. We’re in security. That’s the total opposite of what we do.”

For more than a year, Junior submitted payroll records to the county showing he was paying workers the old prevailing wage, and the county continued paying him the old reimbursement rate.

The underpayments were uncovered by SEIU Local 26, a union that represents thousands of Twin Cities security guards and janitors, though notably not Black Knight workers.

The union then alerted the county, local prosecutors and the press to the shortfalls, which prompted county officials to open investigations into potential wage theft.

“We never had a problem like this for years when these were union contractors,” Brahim Kone, secretary-treasurer of SEIU Local 26, said in a statement. “We are glad these workers are getting the money they were due, but know that this situation happens all too often to working people.”

The union is pushing for the county to adopt a “responsible contractor” policy to prevent workers from being shorted wages in the future.

In a memo to county commissioners in August, Deputy County Administrator Dan Rogan explained the county failed to attach a document listing the new prevailing wage in an updated contract with Black Knight and did not enter the new rate into the county system for tracking compliance. He said in the memo they are now reviewing their contracting procedures.

Junior said he appreciates the county taking responsibility but lamented that his business’s reputation took a hit from being accused of wage theft.

“I didn’t even get the benefit of the doubt,” Junior said. “We took the blunt of the gossip and rumoring.”

Junior said he has been able to pay back wages to around 75 workers and is still trying to get ahold of around 30 more.

Hennepin County ended its contract with Black Knight in August. A spokesman said the new firm, Unparalleled Security, was selected after a competitive bidding process.

*The amount paid in back wages has been updated based on more complete information.