Companies Accused of Underpaying Construction Workers Reach $550,000 Settlement
Audit Reveals Six Years of Misclassification
A recent investigation by the Illinois Attorney General’s office has revealed that Polo Masonry Builders Inc., United Builders Group Co., and company owners Petro Pariychuk and Oleh Synychak have been accused of misclassifying and underpaying employees for nearly six years.
Misclassification and Wage Theft
The investigation, which was sparked by complaints from the Bricklayers District Council 1 and the Illinois Department of Insurance, found that the companies had misclassified nearly 100 employees as independent contractors between 2017 and 2023. This misclassification denied these employees of critical labor protections and resulted in their underpayment.
Underpayment of Wages
The investigation revealed that employees were paid for all hours worked, including hours worked above 40 per week, at their regular hourly rate of pay without receiving any premiums for overtime hours. Illinois minimum-wage law requires that overtime pay be 150% of regular hourly wages for each hour over 40 worked in a single workweek. This means that employees were denied the overtime pay to which they were entitled, resulting in a significant loss of wages.
$550,000 Settlement Reached
Polo Masonry Builders Inc., United Builders Group Co., and company owners Petro Pariychuk and Oleh Synychak have agreed to a settlement of $550,000, which will be used to pay back the employees the wages they were owed, as well as $12,500 for investigative costs.
Illinois Attorney General Responds
Illinois Attorney General Kwame Raoul responded to the settlement, stating, “When employees are misclassified as independent contractors, they are deprived of critical labor protections they deserve and are entitled to under state law. My office will not stop fighting to protect workers’ rights and ensure that all employers doing business in Illinois comply with Illinois laws across all industries.”
Conclusion
The $550,000 settlement is a significant victory for the construction workers who were victims of wage theft and labor violations. The Illinois Attorney General’s office has taken a strong stance against labor violations and will continue to fight to protect the rights of workers in the state.
FAQs
* What was the scope of the investigation?
The investigation found that the companies had misclassified nearly 100 employees as independent contractors between 2017 and 2023.
* What were the workers denied?
Workers were denied critical labor protections and overtime pay, resulting in a significant loss of wages.
* What is the settlement amount?
The settlement amount is $550,000, which will be used to pay back employees the wages they were owed, as well as $12,500 for investigative costs.
* Will the companies face criminal charges?
If accepted by a judge, the settlement will “resolve” the allegations, meaning the companies and owners will not face criminal charges in the matter.
* Will the Illinois Attorney General’s office keep an eye on the companies and owners?
Yes, the Illinois Attorney General’s office will be monitoring any construction firms operated by Pariychuk and Synychak, and they are required to disclose any other firms they work for or operate as part of the agreement.
