A 2021 study found in Minnesota, about 23% of the construction workforce is misclassified, or is paid off the books. It also found these workers earned 36% less in wages and benefits than others who were regularly employed. (Adobe Stock)

Minnesota has what’s been described as one of the toughest wage-theft laws in the country. But labor leaders say there still isn’t much recourse for construction workers.

Hearings will be held this week on a bill they hope will address the issue.

Legislative committees are considering a plan that would allow key agencies to hold owners and managers of construction sites liable, and not just a subcontractor alleged to have committed any wage theft.

While current Minnesota law is strong, Adam Duininck – director of government affairs for the North Central States Regional Council of Carpenters – said workers in his field still have trouble seeking help when they need it.

“There are shell companies or LLCs, and second and third and fourth-tier subcontractors that exist,” said Duininck, “but it’s really difficult for a worker to define who their actual employer is. And if somebody gets caught committing wage theft, then where do you go to seek recourse?”

He said putting this responsibility in the hands of general contractors is similar to requiring them to adhere to safety standards to protect all workers.

The regional chapter of Associated Builders and Contractors opposes the changes, saying they’d target the wrong people. The group says the original law, approved in 2019, offers plenty of avenues for workers to take action.

ABC Minnesota and North Dakota Chapter President Adam Hanson argued that wage theft committed by a subcontractor shouldn’t be tied to the broader operations of a job site.

He said he thinks adopting these changes would be unfair to those who have no knowledge of what transpired.

“The general contractor,” said Hanson, “doesn’t sit in on the HR or the accountant divisions of the dozens and dozens of subcontractors that they work with, on every single project or multiple projects.”

But Duininck said it’s also about establishing a stronger culture of compliance.

“We believe that they’re going to vet their subs [subcontractors] even better now,” said Duininck, “and they’re going to more thoroughly examine who they have on their job sites, and make sure that the rules are being followed in a meaningful way.”