The Construction Worker Wage Protection Act, a Minnesota law that holds contractors and developers responsible for subcontractor wage violations on their job sites, was established on Tuesday.
The new law was part of an omnibus jobs and labor bill signed into law during the 2023 legislative session, and officials from the North Central States Regional Council of Carpenters said it “gives workers hope in collecting their unpaid wages for the work that has already been performed.” A similar law in Illinois went into effect in 2022.
According to the bill text, contractors for Minnesota projects will be held equally responsible for unpaid wages, benefits and penalties when a case is brought against a subcontractor.
“A contractor entering into a construction contract shall assume and is liable for any unpaid wages, fringe benefits, penalties, and resulting liquidated damages owed to a claimant or third party acting on the claimant’s behalf by a subcontractor at any tier acting under, by, or for the contractor or its subcontractors for the claimant’s performance of labor,” the new law text added.
The legislation builds on a 2019 wage theft law to create new wage and hour requirements for employers and offers stiffer penalties to employees who violate.
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