By 25 News

NORMAL – Illinois Attorney General Kwame Raoul has announced a consent decree with two subcontractors building a new production line for Rivian.

According to a release, this decree expands on a previous settlement reached in December 2021 that requires two subcontractors to pay over $300,000 in back wages and penalties.

China-based Guangzhou MINO Equipment Co. has agreed to pay 59 affected employees $170,000 in owed overtime wages and penalties while Florida-based BIW Automotive Solutions Inc. will pay an additional $145,000, according to the terms of the consent decree.

This means Raoul’s office is recovering about 150% of overtime wages that the employees should have received if paid the required overtime premium rate.

His office intends to vigorously pursue two absent defendants – Mexico-based SDS and Semmelweis – for the remainder owed to workers.

SDS and its president have refused to cooperate with the investigation or engage in settlement discussions; Raoul’s office also filed a lawsuit to ensure they pay penalties owed.

The earlier settlement in 2021 against subcontractors, including MINO, recovered $390,000 on behalf of 54 other workers.

Raoul’s office has recovered more than $700,000.The lawsuit against SDS and its president will continue, the release says.

This all comes after MINO, BIW and SDS used an elaborate subcontracting arrangement to deny overtime pay to Mexican laborers, according to the release.

After Rivian hired MINO to build assembly lines, MINO subcontracted work to BIW. BIW then further subcontracted to SDS to obtain much of the workforce MINO used to fulfill its obligations to Rivian. Although SDS was responsible for paying the workers, MINO and BIW shared significant control over their work and their conditions of employment.

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