Real Consequences for Wage Theft in Minnesota

Over the past few years, I have shared communications with you about the increasing legislation against wage theft. While everyone may not agree with the mechanisms to combat this issue, we all agree that wage theft is inexcusable. The key to fixing most issues: wage theft, certification fraud, and so on is usually through compliance. Doing a better job to catch and penalize the offenders.

We saw compliance work this past month. A Hennepin County Judge convicted a painting subcontractor with felony wage theft and theft by swindle for underpaying workers over $35,000. Frederick Newell, owner of Integrated Painting Solutions (IPS), failed to compensate workers for painting and cleaning on a prevailing wage job in Minneapolis.  He was found to have acted with intent to defraud the employees. This felony is punishable by fines, probation and/or jail time.

According to the Department of Labor and Industry, common forms of wage theft include:

• • • • Paying less than minimum wage/prevailing wage per contract.
      • Not paying overtime.
      • Paying employees off the clock.
      • Withholding final pay after firing or employee quitting.
      • Misclassified as an independent contractor.
      • Not paying fringe benefits.
      • Denying legal breaks.

There are a plethora of resources to ensure you as an employer are doing the right things including from the Minnesota Attorney General’s Office and the Department of Labor and Industry. If you are signatory, your union also has information available. In a world with resources at your disposal, failure to understand the rules is not a defense. Financial distress is also not a reason to steal from your workers.

AWC applauds the Hennepin County Attorney’s Office, the City of Minneapolis and everyone involved in protecting the rights of the employees of IPS. You can click here to listen or read the press conference regarding the ruling.

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