The Minnesota House is considering enacting a new law to ramp up protection for workers after stories of wage theft have peppered the state’s construction industry.
In an effort to step up pressure on subcontractors that exploit workers, the bill would target general contractors and project owners that hire the subcontractors.
Contractors often hire subcontractors one on top of another, insulating themselves from wage theft claims. Advocates say the construction industry is purposely structured to stymie workers’ wage theft claims. Many construction workers are also immigrants who may struggle to understand the murky reporting structure.
“This is a business model that’s been set up for the purposes of profiting from the exploitation of (a) largely immigrant construction workforce,” said Rep. Sandra Feist, DFL-New Brighton. “This bill provides that recourse to these workers who have been victimized by wage theft contractors.”
The bill (HF1859) allows workers to file civil lawsuits against contractors for their unpaid wages and gives the state’s Department of Labor and Industry power to inspect employment records related to wages.
Feist, the bill’s chief author, said the legislation would create incentives for contractors or project owners to hire subcontractors who are less likely to commit wage theft and other abuses.
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