Minnesota seeks $2.4 million from contractors for wage theft, unlawful practices

ST. PAUL, Minn. (FOX 9) - Alleging unlawful practices on 19 construction projects, including at the Viking Lakes project in Eagan, the Minnesota Department of Labor and Industry (DLI) will seek to recoup $2.4 million from two construction companies for alleged wage theft violations.

According to a press release, DLI has initiated cases against Property Maintenance & Construction LLC/Property Maintenance and Construction Inc. (PMC), as well as, Advantage Construction Inc. (Advantage), saying both companies failed to pay workers as required by law, resulting in $1.2 million in back wages to workers. The companies also owed approximately $1.2 million in damages caused by the breach of contracts.

An investigation by DLI into each company from March 4, 2019, to June 5, 2022, found 25 employees that it alleges were jointly employed by PMC and Advantage that had not been paid what they were due, including overtime wages. It also found that employees were paid off the books in cash for a substantial portion of their employment, while not being provided earning statements required by law.

According to the investigation findings, PMC's owner, Leo Pimentel, allegedly knowingly disregarded overtime laws, and refused to pay workers the wages they were owed, while actively discouraging workers from reporting the violations.

"Wage theft hurts workers and their families, and hurts responsible employers that abide by the law," said DLI Commissioner Nicole Blissenbach in a statement. "It is unacceptable for employers to cheat employees out of the full wages they work so hard to earn."

In October 2022, the Minnesota Attorney General's Office filed a lawsuit against PMC, alleging it delayed DLI's investigation by failing to keep and preserve records, while also refusing to make them available to the commissioner. 

"It is hard for Minnesotans to afford their lives if wages are being stolen right out of their paychecks," said Attorney General Keith Ellison in a statement. "I applaud DLI for taking action to recover millions in wages and damages for workers who had their pay stolen from them."

The lawsuit was settled in September 2023, clearing the way for DLI's investigation to conclude.