Minneapolis subcontractors to receive $430,000 in back wages
The Department of Labor recently discovered workers at the Uptown at City Walk housing project and City Hall/Library and Senior Center construction project in Minneapolis were not receiving proper wages they were rightfully owed for their time and attendance.
Following a Wage and Hour Division investigation, it was revealed that individuals working on these sites were being shortchanged, earning one-quarter what they should have and being granted just a fraction of the benefits they were owed.
"In this competitive contracting environment, no contractor should gain an economic advantage by paying workers below the required wages and fringe benefits on a prevailing wage project," said Theresa Walls, director of the Wage and Hour Division's Minneapolis District Office, in a recent press release.
The Fair Labor Standards Act (FLSA) establishes that contractors and subcontractors must be paid at least minimum wage for all of their hours worked, or the equivalent thereof, even if they are day laborers who are contracted independently. Failing to pay employees as such can result in investigations and expensive lawsuits. In this case, 59 workers were set to receive $430,000 in back wages for their unpaid employee attendance.
Following a Wage and Hour Division investigation, it was revealed that individuals working on these sites were being shortchanged, earning one-quarter what they should have and being granted just a fraction of the benefits they were owed.
"In this competitive contracting environment, no contractor should gain an economic advantage by paying workers below the required wages and fringe benefits on a prevailing wage project," said Theresa Walls, director of the Wage and Hour Division's Minneapolis District Office, in a recent press release.
The Fair Labor Standards Act (FLSA) establishes that contractors and subcontractors must be paid at least minimum wage for all of their hours worked, or the equivalent thereof, even if they are day laborers who are contracted independently. Failing to pay employees as such can result in investigations and expensive lawsuits. In this case, 59 workers were set to receive $430,000 in back wages for their unpaid employee attendance.
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